Correction currently witnessed by the market could be because of geopolitical reasons and may not be too deep. Infact it could lead to fresh money back into the market – money that was waiting on the sidelines., said Mehraboon Irani of Nirmal Bang Securities
The market today snapped its gaining streak with Nifty closing below 9200 for the first time in four sessions. However, the rupee continued to strengthen.
The 30-share BSE Sensex slipped 220.73 points to 29,706.61 and the 50-share NSE Nifty dropped 63.65 points to 9,198.30.
Mehraboon Irani of Nirmal Bang Securities is of the view the correction currently witnessed by the market is basically because of geopolitical reasons and may not be too deep and infact it could lead to fresh money back into the market – money that was waiting on the sidelines.
Independent market expert Ambareesh Baliga says no doubt that momentum is helping market move up but valuations are not keeping pace with the stocks and so there is a likelihood of a bubble being created, so one needs to be cautious.
Ashwani Gujral of ashwanigujral.com says since Nifty is not able to hold on to 9200 levels, the market could now trade in a band of 9000-9200. April could be the first sideways month in three months. However, more evidence of this band will be clear on Monday
So, unless we do not break above 9200 - 9250 decisively, we are heading for a downside. So, beware if 9180 does not hold, then more coming.
Stock/sector specific, when asked what he would look to buy if the market corrects 5-10 percent, S P Tulsian of sptulsian.com said one can look at spaces like auto ancillary, sugar and cement. He said he is also closely looking at steel as a theme.
Irani thinks Avenue Supermarkets is a story that will unfold over the next 2-3 years. It is a certain four-figure stock, so would continue to be a buyer there.
Meanwhile, although the valuations of some of the IT stocks looks very attractive, Irani would not buy into them now.For the full discussion, watch videoThe Great Diwali Discount!
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