The last day of the trading week was not a good one for the market, Nifty closed well below 9600 mark and closed in the red for the week, although the Sensex ended the week mildly green.
The 30-share BSE Sensex was down 152.53 points at 31,138.21 and the 50-share NSE Nifty slipped 55.05 points to 9,574.95 but the loss was more in broader markets on negative breadth.
Prateek Agrawal, ASK Investment Managers expects the market to move in a narrow range for some more time but the bias would be upwards and it is unlikely that there will be any significant correction.
Moreover, given the lower interest rate scenario sustaining going forward it could mean 18.5 one year forward price to earnings (PE) as the new normal versus 16.5 PE expected in the past. So, consolidation in the market is more likely than a sharp cut.
Dipan Mehta Member BSE & NSE says the correction which was already underway has caught a bit of momentum and seems like market has found a roof at the current juncture. So, investors and traders need to brace themselves for slightly more negative trends for next few trading session, at least until the earnings start in mid-July because there is no real trigger for the market. The fears related to GST are priced-in and so have the upsides.
However, this correction certainly gives an opportunity to buy into stocks because once the disruption related to GST ends by September quarter, one could see good jump in earnings for December and March quarter, says Mehta.
Many good quality stocks have already corrected 5-10 percent and another 5-10 percent would give investors margin of safety to enter into them but look at stocks which have delivered good returns over the past few years, and where growth is still intact, corporate governance standards are good, says Mehta.
Ashwani Gujral ashwanigujral.com says all sectors expect pharma are down, market breadth is negative, we have a correction after nearly six months of rally- so all this points to deeper correction. Any correction, which gets the market in the 9200-9400 zone would be healthy for market to get past 10,000.
Mitessh Thakkar mitesshthakkar.com says today's close which was below the 9580 mark on Nifty suggest that we may start next week with some sort of corrective or negative bias.
Stock specific, Mehta says there are not new themes as investment ideas and buy the same old performing stocks that may be available at cheaper valuations – stocks the likes of Asian Paints, Havells India, Astarl Poly Technik, auto stocks like Eihcer Motors, Maruti and some auto ancillary stocks. One could also look at private sector banks, the NBFCs (housing, gold, micro finance, consumer finance, retail) etc.
SP Tulsian of sptulsian.com also shared his stock specific views.
For the entire discussion, watch video
Discover 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!
