Indian Market outlook by Amit Gupta: TradingBells
Indian Markets are looking for support as stocks have declined massively from higher levels. While many stocks are available at tempting valuations, experts suggest wait and watch policy for the moment.
Comments from Mr Amit Gupta Co-Founder and CEO TradingBells....
The poor show on the first day of August followed the worst July for the domestic market since 2002. India was among the worst-hit major markets globally. Surely, domestic factors too played a role in the selloff. BSE Sensex tumbled 462.80 points or 1.23 per cent to 37,018.32 while NSE Nifty ended at 10,980, down 105.40 points or 1.24 per cent.
Nifty has surrendered its 200-DMA and entered into the bearish territory. However the sell-off is linear and brutal therefore a sharp pullback rally cannot be ruled out anytime from the oversold territory. The trend will only reverse if the market witnesses a strong closing above 200-DMA of 11,150 with any major game-changing trigger otherwise the downside trend will continue towards 10600 which is a major support from here. It is a good time for investment amid extreme pessimism conditions but investors have to keep a horizon of 2-3 years. Traders have to play cautiously where they should trade only intraday until the market witnesses any significant sign of reversal.