The Indian Army has conducted surgical strikes crossing the Line of Control (LoC) into Pakistan Occupied Kashmir inflicting significant damage to the terrorist infrastructure across the border.
The market response was a sell-off mid-day and continued to trade volatile.
However, Sanjay Dutt of Quantum Securities says although the geopolitical risk is disconcerting, he does not think the military situation would go out of control.
Dutt says these in fact could be opportunity to accumulate stocks. India’s fundamental story does not change even if there is a 15-20 days conflict. The secular trend remains intact. However, he cautions against going out and buying now and advices to wait and see what happens.
The Director General of Military Office (DGMO) also said the surgical strikes have stopped as of now.
Till now mild correction, people should stand aside not a dip to buy because this news will impact market more and 8700 may get taken out.
Ashwani Gujral of ashwanigural.com says do not buy any dips and if there are leverage positions exit because uncertain market tend to fall.
However, although some retaliatory action would happen from Pakistan it would be short-term phenomenon.Gujral says as long as 8000 on Nifty is held, the uptrend is not threatened. This correction could maybe allow market to correct and help the next leg of the rally.Rajat Bose of rajatbose.com says intermediate uptrend could be broken, and Nifty might head to 8400. So a long-sideways correction could take place and 9000 would only come after some time. Now, crossing 8700 would be tall order. Deven Choksey of KR Choksey says he has not yet seen any panic selling, but the sell-off could be due to the longs unwinding.However, if situation continuous to remain precarious then there could be pressure, the ETFs would be the first to offload position.Since the market does not like uncertainty, the fear of money being taken off the table is possible but as of now it is not happening, says Choksey.Although buying looks attractive as of now he is not buying, says Choksey.
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