If August lows sustain, Nifty can trend up further, says Atul Suri

Atul Suri said he expects a period of sectoral churns in the Indian stock market, as leadership themes change. The trends that had been dominant in the past 2-3 years are slowing down, Suri added.

Moneycontrol News

September 09, 2024 / 17:33 IST

Goldilocks in US stocks, back home, August lows must sustain, says Atul Suri

Investor and trade Atul Suri believes that if the benchmark indices fail to sustain above the August lows, it can be a cause of concern in the market, and investors will need to reconsider the market setup, however, he adds there are greater chances of a breakout on the upside.

Over the longer term, the bigger global market picture appears to be in the right place. "We have seen a goldilocks, where most things are where they ought to be, and I do not see any big issue," said Atul Suri.

"I see higher probability of a breakout on the upside. The journey will not be linear, and we need to live with the volatility," he said, speaking to CNBC-TV18 during a recent conversation, acknowledging that September has been a volatile month in the past.

Atul Suri highlighted that he expects a period of 'very evident' sectoral churns in the Indian stock market, as leadership themes change. The trends that had been dominant in the past 2-3 years are slowing down, Suri said, adding that he sees three sectors doing well:

Pharma, he said, has been ignored for a while, but now we are seeing lot stocks from this space making new highs. "They are bucking the overall trend."
IT shares too are breaking out, and the themes is playing out well, Atul said, adding that the space had underperformed over last 2-3 years and could make a comeback now.
As the market gradually moves towards defensives, Atul Suri said he sees Consumption space emerge as a strong play.

These spaces, Atul Suri said, are now giving good opportunities for investors, as the action at the index level may not define the focus of the market. Aside of these space, Atul Suri is bullish on the BFSI pack. "Now, a lot of money is going into broking, insurance and AMCs", he added.

For Brent, Atul Suri said $70 would be a good support but if it breaks below this level, it can be a case of worry, as it may put 'a question mark on the health of the economy'.