Markets On Recovery Path, Will Remain Resilient, Say Analysts
Analysts foresee markets on the recovery path with little resilience after Wednesday's session, which was the worst in four years.
The markets on Wednesday saw recovery after reporting their worst session in four years. According to analysts, the markets are on the path of recovery with little resilience.
"As of now, the bounce is on and you know it was mayhem but as of now, all the hourly mechanical indicator(s) have just given a crossover buy. So, for the next couple of days, not with the same intensity but markets should be better... Yesterday's lows are the temporary bottom, as I see it," Hemen Kapadia, senior vice president of institutional equity at KR Choksey Stocks & Securities, told NDTV Profit.
He further added that the markets are on the recovery path but for a little while he would focus on stocks instead of indices.
Echoing the opinion, Siddhartha Khemka, head of retail research at B&D Motilal Oswal Financial Services Ltd., said that after the roller coaster ride following the exit polls, the rally on Wednesday was a good relief. He said that the focus would be on government formation but with the RBI policy's outcome this week, we could see an upside in the markets.
On the other hand, Jitendra Gohil, chief investment strategist at Kotak Alternate Asset Managers Ltd., said that the markets will stay a bit resilient, while he expects "another 3-5% correction". However, there could be some cuts in valuation in certain pockets that were frothy.
Looking at the current market scenario, Gohil said that he is bullish on pharma, real estate, auto and ancillaries, and PSU banks.
While discussing whether Nitish Kumar could take over the Ministry of Railways, Khemka said that with his administrative skills, he would only attract more focus and help the sector grow.
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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.
