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Correction not an opportunity to buy; too many factors against equities, says Gautam Shah

Current correction in the market is not a buying opportunity as the trend is not in favour of market recovery, said Gautam Shah, associate director and technical analyst at JM Financial, adding that there were too many factors against equities.
Shah said "these are very challenging time for both global and local equities".
"Many global equity markets are in a confirmed bear market, and so the Indian equity markets would also move in tandem," he said. “The manner in which the market came off last week was some indication that this was not a natural reaction but the resumption of the downtrend that you saw in the months of September and October,” he added.
A break of 10,600 on Nifty will confirm that the downturn is in place and could immediately take the Nifty down to 10,400 and then possibly to the October low of 10,000-10,100, he said.
“My marker on the upside is 10,850 and till the Nifty is below that I would continue to work with downside targets,” he said.
On the Bank Nifty, he said, “For now Bank Nifty is the out performing sector in the market but the scenario could change over the next many days and once that confirmation happens, one could have shorting opportunities there."
However, there is no place to hide in the current market scenario, he said. Most sectors like capital goods, autos, pharma, FMCG stocks have broken important supports last week and one doesn't see them holding out in the near-term, he mentioned.
Globally, he said the US market has been in an uptrend for seven years but the tide may be turning and if 24,200 on the Dow gets violated. The charts are indicating a worse case of 19000-19500 on the Dow, he said.