The market is sustaining above 9000 which is a positive sign for investors. As long as we sustain above this level, bulls should remain control, says Rusmik Oza of Kotak Securities.
It was a volatile week for Indian markets, but a sharp selloff on Friday wiped out the gains, and both Sensex, and Nifty50 closed the week with a cut of over 1 percent.
D-Street gave a thumbs down to the Reserve Bank of India’s repo rate cut as the interest on the total moratorium period which will be 6 months could get converted into a term loan that could hurt banks and threat of NPA’s will increase, Rusmik Oza, Sr. VP & Head of Fundamental Research at Kotak Securities said in ‘Market Podcast’ with Moneycontrol.
The market is sustaining above 9000 which is a positive sign for investors. As long as we sustain above this level, bulls should remain control, he said.
Oza further added that risk factors are going up as most of the sectors will get hit because of the lockdown. Next month some Rs 60,000 cr of NBFC refinancing is also due.
“We see the possibility of further rate cuts because RBI expects inflation to go down in the second half, and the first half GDP is likely to be in a negative zone. Overall, GDP is likely to degrow by 2 percent,” he said.
The market has been forming a lower top, and lower bottom formation in the last two weeks. “In the coming week, if Nifty breaks above 9150 then the rally could well continue, while at the lower end, 8800 is likely to lend support,” said Oza.
(Tune in to the podcast for more)
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