Normally, posts such as rallies market consolidate. So one should wait for correction near to 10600 levels to reenter in the market. Even one should take some money out from the table to reinvest on the downside.
Experts believe the direction could be mildly neutral to bearish this month with increased volatility
One can never catch the absolute bottom and for investors, it’s always advisable to latch on to their desired stocks in a staggered manner in such corrective phases, says Sameet Chavan of Angel Broking Ltd.
Experts are of the view that most of the companies which have more than doubled are looking strong as they belong to COVID-proof sectors such as pharma, agro-chemical etc.
The crucial support for the Nifty is placed at 11300 and then 11111. While resistance can be seen around 12000 mark. Traders should use any dip towards 11300 as a buying opportunity.
Of the 35 sectors classified by the BSE, foreign investors were net buyers in 14, 17 sectors saw outflows and four witnessed no action in July.
From a technical perspective, the bulls will remain in control if the Nifty records a breakout above 10,900.
We also see that safe-haven appeal for gold will remain intact amid concerns of a rise in COVID-19 cases and geopolitical concerns. Investment demand in the form of gold ETF is at a 7-year high.
Most of the companies in which FIIs have raised stake in the last one year consistently are from the small & midcap space
Household & personal products, oil & gas were among the top gainers, while financials was the biggest loser of foreign funds.
Of the 35 sectors classified by the BSE, foreign investors were net buyers in 13. Meanwhile, 18 sectors saw outflows and four witnessed no action from FIIs in May
Historically, bulls have controlled the D-Street in the last six out of ten years in the month of June
The recent price structure of descending lows and peaks indicates immediate hurdles near the 9600-9700 zone.
Of the 35 sectors classified by the BSE, foreign investors were net sellers in 24 sectors. Meanwhile, eight sectors saw positive flows and three witnessed no action from FIIs in April, data provided by National Securities Depository Ltd (NSDL) shows.
The shareholding pattern of Mar-20 for around 160 of the top 200 stocks (accounting for 70% of the top 200 market cap) gives a flavour of the extent of FII selling that has happened during the crash in Feb/Mar-20.
Data from the last 10 years suggest that bulls got an upper hand seven times in the month of April. Nifty50 closed in the green in 6 out of the last 10 years, data from AceEquity showed.
Read on to know what was on the shopping list of foreign investors
The Nifty50 has retraced 61 percent from lows of 7,500 to highs of 9,050. Therefore, 8,000-8,200 levels should act as a support zone for a bounce-back rally which can take Nifty50 to 8,800-9,000 levels
Small-ticket consumer discretionary sector which have corrected can bounce back. Private banks have seen a sharp correction, and insurance companies should continue to see secular growth.
Impact on retail investors of the 4 Ps which stands for Paisa, Pain, Pandemic, and Pledges amid the COVID-19 outbreak.
Effectively about 10-12% of the F&O stocks would be impacted. For most other stocks, even if MWPL are restricted, open interest is far lower to have any meaningful impact.
Overseas investors pulled out a net sum of Rs 24,776.36 crore from equities and Rs 13,199.54 crore from the debt segment between Mar 2-13, depositories data showed.
Sectorally, selling pressure was seen in metals, Energy, Infrastructure, oil & gas, and Realty down over 5 percent each.
Equity as an asset class has significantly outperformed other asset classes over medium to long time horizon. Precious metals such as Gold or Silver have always been viewed as a safe assets.
SIP, over the years, has turned out to be most beneficial to investors who neither have the time or adequate resources to start investing on their own, Devarsh Vakil has told Moneycontrol.