Anil Manghnani of Modern Shares & Stock Brokers, tells CNBC-TV18 that the market is tipped downwards today. Given the bout of positive news yesterday (good IIP numbers, food inflation at an 18-month low), he says that the quick sell off late afternoon was quite unexpected. For today, 5470 becomes an important level, he says. If we start to trade below that, then we open downsides closer to 5350.
He says that defensives such as FMCG will hold for long. If ITC came down a bit, it would be a good buy, but there is a lot of strength left in the price for now. Marico has also seen a boost in price from Rs 126 yesterday to Rs 139. If there is a rally, it will be led by the defensive FMCG sector, he says. Banking sector has completely broken down. Manghnani expects Auto to follow soon if the market breaks to 5350-5300 levels. Below is a verbatim transcript. Also watch the accompanying video Q: Are the borders for the market changing for you in the short-term basis even? A: The band is definitely shifted on the downside. So we probably move from 5,650-5,950 to about 5,350-5,700 range. Given the positive news yesterday, it is very surprising that we sold out. Maybe it was to do a little bit with what is happening in the global front with commodities continuing to correct. Europe was quite down and that might have spilled over to our markets. I guess we had good news on the export front, even food inflation was 18 month low. So itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
