In the near term, charts structure surely look weak. Any pullbacks should be utilized by the trader to go short on the index and 11,300 zone is likely to act as a stiff resistance, Amit Shah, Senior Analyst, Technical Research, Indiabulls Ventures, said in an interview with Moneycontrol’s Kshitij Anand.
The Nifty50 seems to be in the bear grip. It is also the third week of decline on weekly basis. Is it time to go short on the index?
It is true that market is quite weak in the near term and has lost its upward momentum for some time now. We did mention in one of earlier articles about rupee heading towards 73/$ when it was near 69/$ levels.
The rupee is likely to consolidate for some time before it starts depreciating further and crosses 73/$. Essentially, the market is correcting the gains of the previous major move from the lows of 9,950 to 11,760.
The index is also likely to head towards 10,700-zone in the near term. However, 10,700-zone may act as a very strong support zone in spite of all the noise around and could mark as the lower-end of the range. The index is likely to get into a range of 10,700 to 11,300.
How are markets looking on technical charts? Supertrend indicator has given a sell on weekly charts and MACD is also on the verge of giving bearish crossover. What are the other parameters which investors should watch out for this week which is an expiry week?
In the near term, chart structure surely looks weak. Any pullback should be utilised by the traders to go short on the index and 11,300 zone is likely to act as a stiff resistance.
As far as investors are concerned, they should look to buy quality stocks near 10,700 zone. Broadly, we still remain in a "Bull" market correction.
What is your view on small & midcap stocks?
The mid & smallcaps, broadly as a sector, had their best time till 2017. Investors in this space are habituated for quick sizable returns which is unlikely to happen in the near term.
They are now likely to go through a long period of time-wise consolidation. A very few selected stocks within the space will do well while majority of the stocks within the space consolidate for a long time.
Top three stocks which investors can look at for a minimum holding period of 1 month?
We have been bullish on steel stocks for a while now. The steel sector has been resilient and has completed its phase of correction and in the near-term showing early signs of large move unfolding. Here is a list of top three stocks which could be bough on declines.
Tata Steel: Buy| Target: Rs 700
Suven Life: Buy| Target: Rs 335
Bata India Ltd: Buy| Target: Rs 1,060
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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!
