Sensex, Nifty recover morning losses; analysts say good time to pick long-term bets

Nifty can find support at 21,850 followed by 21,800 and 21,700, said analysts

Equity benchmarks BSE Sensex and NSE Nifty 50 recovered from morning losses, and were flat amid mixed global cues. Analysts expect the market to remain turbulent over the next few days as small and midcaps face selling pressure over valuation concerns. This, however, is a good time for investors to make medium-to-long term investments, they said.

The Sensex was flat-to-positive at 72,770, while Nifty was mildly in green, trading just above 22,000. At 10.25 am, 2164 shares advanced, 1020 shares declined, and 78 shares were unchanged.

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If the Nifty falls towards the support level of 21,800, investors can use the opportunity to make new medium-to-long term investments, Deven Mehata, research analyst at Choice Broking, said.

"The Nifty can find support at 21,850 followed by 21,800 and 21,700. On the higher side, 22,050 can be an immediate resistance, followed by 22,150 and 22,200," he added.

On the other hand, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services views this correction as unsurprising as frothy valuations in broader markets were not sustainable.

"There is room for the broader market to correct more since the valuations continue to be elevated. Investors should now focus on largecaps and quality midcaps. The turbulence in the market will give cherry picking opportunities," he added.

Meanwhile, broader markets recouped some of March 13 losses, with Nifty Midcap 100 and Nifty Smallcap 100 indices rising up to 1 percent. Fear gauge, India VIX cooled off by a percent to test 14 level.

Sectorally, Bank Nifty and Nifty Realty were the top laggards, whereas Nifty Media and Oil & Gas indices bucked the trend.

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Global markets falter

Globally, US markets ended on a mixed note overnight as traders looked ahead to another inflation reading. February's producer price index, a metric of wholesale inflation is due on March 14.

While Dow Jones managed to eke out slim gains on March 13, tech-heavy NASDAQ Composite and the S&P 500 indices slipped up to 0.5 percent.

Asia-Pacific markets, too, were largely rangebound this morning after Wall Street's rally fizzled out. Japan's Nikkei 225 index slipped 0.3 percent, while South Korea's Kospi climbed 0.4 percent, and Hong Kong's Hang Seng rose 0.2 percent.

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