Markets To See A Week Of Consolidation, Say Experts
With the data points on the macro side extremely strong, the action in the broader market will continue, FA Avinash Goraskshakar said.
Investors must avoid taking long positions, as markets will see a bit of consolidation during the week, according to Aditya Agarwala, head of research and investments at Invest4edu Pvt.
"As we approach year-end, the markets usually get into a very narrow range and remain volatile. I would try and avoid index trading for tomorrow and this week," Agarwala told NDTV Profit in an interview.
Markets are consolidating as liquidity in the coming week or two could be moderated, said FA Avinash Goraskshakar, director, research, Profitmart Securities Pvt. "A lot of profit booking is taking place, which is a healthy sign for the market."
With the data points on the macro side extremely strong, the action in the broader market will continue, Goraskshakar said. "It is a good time for investors who want to invest in broader market stocks... But they must be very selective, as they have all rallied."
India's benchmark indices closed lower on Monday, snapping a three-day rally after rising to near-lifetime high levels. The day's fall was because of losses in banks, fast-moving consumer goods, and information technology stocks.
The NSE Nifty 50 closed 45.20 points, or 0.21%, lower at 21,411.45, while the S&P BSE Sensex fell 191.25 points or 0.27%, to close at 71,292.50.
Markets could see some profit taking at the current levels, Agarwala said.
"For Bank Nifty, 47,800 is a key support area to watch out for, and if that is taken out, the markets could see some bit of profit taking," he said. The key support for the Nifty is at 21,400. A 50- to 100-point dip in the market could be used as a buying opportunity, according to Agarwala.
Auto components, railways, and the hospital could have positive momentum going forward, according to Goraskshakar. "Most of the wagon companies are sitting on a large order book. Any correction in the market must be used for buying stocks like Jupiter Wagons Ltd., Titagarh Rail Systems Ltd., and Texmaco Rail Engineering Ltd."
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.
