Once short-term uncertainty subsides, investors are likely to chase value. Attractive levels are starting to emerge in the midcap universe and select opportunities should be explored in that space.
Broader markets underperformed – the S&P BSE Midcap index rose 0.27 percent while the Nifty50 gained 0.25 percent compared to 1 percent rally seen in the benchmark indices
We suggest retail investors to adopt a staggered approach (say spread over the next 6 months) towards increasing their equity exposure.
"Global events like Brexit and US-China trade will weigh on markets for the next few weeks", said Mihir Vora director and chief investment officer at Max Life Insurance.
In case there is a non-NDA government, UBS models Nifty to correct 10-15 percent
Being stock specific with a bottom-up-approach and choosing quality names & brands will be a safe investment strategy .
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The fall in Indian markets despite a positive trend seen in most Asian markets suggests that bears are here to stay and volatility is likely to continue till the election verdict
Nifty has taken support at its 100-day moving average placed at 11,132 and formed a bullish candle for the day. It needs to cross the immediate hurdle of 11,300 for a bounce back towards 11,400-11,450
"Between the broader markets and largecaps, one needs to be looking at a balanced approach to investing," said Kumar.
If any single party crossed the halfway mark, there would be a significant rally, but on the flip side, if an unstable coalition assumes power, Nifty could decline towards 9,000,
India VIX fell down 0.90 percent at 27.13. However, higher VIX suggests that volatile swings could continue in the market ahead of the election outcome
“The protracted trade wars which are right now happening is suggesting that the global environment is much more positive for bonds," Prasanna said.
Historical analysis of past 3 general elections reveals that election years are good for the equity markets with positive returns in each of those calendar years, Elara Capital said in a report.
The index broke below its crucial 100-day exponential moving average (EMA) placed at 11,253 to form a bearish candle
Global volatility and elections-related uncertainties are key events to watch out for
The Fibonacci retracement and extension also play a vital role to understand where are the turning areas of a Wave
He said the focus of the house continues to be on corporate banks.
It is an ideal strategy to play in a higher volatility environment when we expect to fall in volatility near the ATM strikes.
Based on the broader formation of the market, it would now be a very tough task for Nifty to cross 11,760, before the outcome of election results
The recent correction is mainly led by the weakness in global markets, on mounting fear of an adverse outcome of the trade talks between the US and China
India VIX is hovering near 26 and suggests a volatile swing in the market with some selling pressure
Diamond chart patterns usually happen at market tops.
Stability in the new government and reduction in global trade tensions would help matters in reviving growth from hereon.
An inverted yield curve is considered as a leading indicator for a slow down.