Analysts expect the markets to turn cautious and consolidate in the near term as a broad correction gradually sets in.
A few index stocks are keeping the NSE Nifty 50 and the S&P BSE Sensex stable, and some of the mid-cap stocks are keeping those indices on the upside, according to Dipan Mehta, founder of Elixir Equities Pvt.
A broad correction is gradually setting into the market, Mehta told NDTV Profit on Friday. "But, by and large, we are seeing (that) selling (is) taking place across the board."
"Maybe the markets have run a bit ahead of themselves," he said. Mehta expects a 10–15% correction in public sector companies.
The benchmark equity indices ended the choppy trading session higher but declined on a weekly basis.
The NSE Nifty 50 ended 64.55 points, or 0.30%, higher at 21,782.50, and the S&P BSE Sensex gained 169.98 points, or 0.24%, to close at 71,598.41.
Intraday, the NSE Nifty 50 fell 0.41% to 21,629.90, and the BSE Sensex fell 0.32% to 71,200.31.
Corrections have never been an issue but what is missing is the follow-up to that, according to Gaurav Bissa, vice president of Incred Equities. "We are seeing the pain in the broader market indices, and if we see Monday having another set of weaknesses, then this may likely continue and go lower."
Bissa said the Nifty has multiple supporters but will be range-bound going ahead. He advises not to hurry to buy or sell indices but rather to be stock-specific.
For the Nifty Bank, 44,700 is a wonderful level to buy and an upside of 1,000 points can be expected from that level, according to Bissa.
Mehta highlighted that investors in fast-moving consumer goods companies need to move away to other sunrise sectors like entertainment, travel and tourism as they are gaining traction.
Looking ahead to next week, the market seems cautious ahead of the release of inflation data from the U.S., U.K. and India, coupled with a gradual increase in the U.S. 10-year Treasury bond yield, according to Shrey Jain, chief executive officer of SAS Online.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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