The week gone by ended with a huge red candle erasing gains from the start of the week. This is seen as a correction, as the short term trend for the market has turned down.
Retail investors have always been known for bottom-fishing in the hope of getting outrageous returns in a very short period.
Investors should watch out for the US’ second stimulus package. This move is expected to lift the overall sentiment of the US market and, in turn, markets across the globe.
The Nifty50 is portraying a bearish outlook and a decisive break below 11,000 can lead to a retest of 10,600 which is a possibility in a couple of weeks.
Retail turnover has increased to about 57 percent of the average cash volumes on the exchanges in the first quarter FY21 while daily deliveries have seen a dip.
Pharma stocks have witnessed a brief halt/pullback towards short term moving averages, however, the trend is still positive. Some of the players have started their next up leg.
It is expected that domestic cues may not have any major impact going ahead for the next few weeks and global signals may dictate the behavior of domestic bourses.
The index is hovering around 10,600-10,700 levels, which might turn into a crucial resistance, and support is now placed at 10,300, Samco Securities's Umesh Mehta told Moneycontrol.
Sheer underperformance and the oversold state of small and midcap stocks have resulted in outperformance when the market, in general, bounced back from lower levels.
The current 94% rally in the past 3 months in the Reliance Industries Limited stock is unsustainable as the human mind can easily extrapolate but markets act differently all the time.
India’s cases are already on a rise with no sign of peaking. But, since businesses are gradually opening up, the expectation is that earnings should normalise in two quarters at least for a few sectors.
Real estate, cement, infrastructure are showing weakness in technicals. Whereas, auto especially two-wheelers, pharmaceutical, and FMCG are showing resilience on a technical front.
Now a decisive break of the range of 9,900-10,000 still looks difficult and another round of equity sell-off cannot be ruled out unless we surpass this range.
Global cues will continue to shadow Indian benchmark indices this week. Traders should keep an eye out for support levels at 8,700 and resistance levels at 9,200 in the Nifty50, Samco Securities' Umesh Mehta told Moneycontrol.
Despite the infusion of Rs. 20 lakh Cr. by the Government, the Street was disappointed which led the markets to bow down to the selling pressure.
HUL’s quarterly show missed Street estimates on an overall front and the underlying volumes contracted by 7 percent as demand fell due to the COVID-19 lockdown, the highest decline since demonetization quarter.
The Nifty50 is expected to face stiff resistance at 9300 which is a 38 percent retracement of the entire fall. Any weakness below 9000 will begin another round of selling in the market.
Auto, auto ancillaries, NBFCs, private banks, and metals will witness recovery, says Umesh Mehta of Samco Securities.
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
April may turn out to be a sucker’s rally where the fence-sitters will be pulled in. We will see some amount of price stabilizing but a major rally to go past 10,000 on the Nifty is less likely.
Ideally, the best time to invest is when fear grips the market. The downfall is purely sentimental rather than being backed by deteriorating fundamental business prospects.
D-Street has always been exposed to greed as well as fear and it is the fear that helps long-term investors build wealth, say experts.
The 12,130 level should be a strong support to watch out for in the coming week. A good amount of profit booking can emerge if markets cross this level on the downside.
A fresh record high immediately seems unlikely, however, post a significant correction market will move up higher again, says Umesh Mehta of Samco Securities
Umesh Mehta recommends 5 stocks that would be wealth creators for the next 2-3 years would be Hindustan Zinc, HDFC, SBI Life Insurance, Kotak Mahindra Bank and ITC.