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    Market will retest 7,500 if a stimulus package doesn't come quickly: Ajay Srivastava of Dimensions

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    Market will retest 7,500 if a stimulus package doesn't come quickly: Ajay Srivastava of Dimensions

    Ajay Srivastava of Dimensions Corporate Finance Services on Tuesday said he doubts that the economy will open up as soon as the market thinks it will.
    “Market has been very exuberant. The market believes that this problem is short-term and the opening up will happen much faster than even perhaps is plausible. Therefore, to that extent people have bought into the stock market hoping for a very quick opening up of the economy,” he said.
    “However, my guess is, the reason for that is not that it is actually bullish, but for reasons that technically there are no major shorts playing out in the market to counterbalance the exuberance. So, at these valuations, most stocks are factoring in quick opening up of the economy and back to normality. If it does not happen, we will have own set of corrections to come through,” he added.
    Srivastava advised investors to stay put and see how the economic reopening takes place.
    “We are all running blind because none of us can make out what is the opening looking like. So, I would suggest that this is not the time -- just stay put and understand what the government policy is going to be on the revival of the economy.”
    He further added that if a good economic package doesn’t come quickly then the market will retest 7,500.
    “If you are betting big on a big government package, you can buy most stocks except infrastructure stocks. But, you are basing yourself on a big robust government package to assist the economy. If that doesn’t come, then you will go back and test the lows of 7,500 again and then maybe start to build a base to recover from there onwards,” he said.
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