The Nifty50 appear to be in a bear grip. Since it is the third week of decline on week Basis. Is it correct time to go on short on the index now?
It is true that the market is quite weak in the near term and has lost its upward momentum for some time now. It has also been true news that rupee heading towards 73 per dollar when it was near 69 per dollar levels. The rupee is likely to consolidate for some time before it starts depreciating further and crosses 73 per dollar. Importantly, the market is recovering the gains of the previous major move from the lows of 9,950 to 11,760.
The index is also likely to head towards 10,700-zone in the near term. However, 10,700-zone may act as a very strong support zone in spite of all the noise around and could mark as the lower-end of the range. The index is likely to get into a range of 10,700 to 11,300.
Amit Shah of India bulls Ventures said the Nifty is also likely to head towards 10,700 zones in the near-term.
What are the key factors to look at while measuring the corrections for bull markets?
How are markets looking on technical charts? Super trend indicator has given a sell on weekly charts and MACD is also on the verge of giving bearish crossover. What are the other parameters which investors should watch out for this week which is an expiry week?
Chart structure surely looks weak. Any pullback should be utilised by the traders to go short on the index and 11,300 zone is likely to act as a stiff resistance.
As far as investors are concerned, they should look to buy quality stocks near 10,700 zones. Broadly, we still remain in a “Bull” market correction.
What is your suggestion for small & midcap stocks?
The mid & small caps, broadly as a sector, had their best time till 2017. Investors in this space are habituated for quick sizable returns which is unlikely to happen in the near term.
They are now likely to go through a long period of time-wise consolidation. A very few selected stocks within the space will do well while the majority of the stocks within the space consolidate for a long time.
Stocks which investors can look at for a minimum holding period of 1 month?
We have been bullish on steel stocks for a right now. The steel sector has been flexible and has completed its phase of correction and in the near-term showing early signs of large move unfolding. Below is a list of top 3 stocks which could be the branch on declines.
Tata Steel: Buy| Target: Rs 700
Suven Life: Buy| Target: Rs 335
Bata India Ltd: Buy| Target: Rs 1,060
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