BSE Sensex and NSE Nifty 50 ended lower for the sixth straight session on Wednesday ahead of weekly and monthly F&O expiry. BSE Sensex plunged 509 points or nearly 1 per cent to 56,598, while NSE Nifty 50 crashed 0.9 per cent or 149 points to settle at 16589. Analysts say that owing to the global uncertainty, the stock market is likely to remain under pressure in the near-term. Monthly F&O expiry on Thursday and the upcoming RBI MPC meeting outcome will be keenly watched by the investors. So far in the year, both BSE Sensex and NSE Nifty 50 have plunged more than 4 per cent, turning negative for 2022. Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that the overall market trend seems to be weak and there is no confirmation of any buying emerging from the lows. If the 50-share index breaches 16800 support, then there may be a possibility of a minor pullback rally near 16800-16750 levels in the next 1-2 sessions, Shetti added.
Time to buy, sell or hold amid the current market scenario?
Sanjiv Bhasin, Director, IIFL Securities, told FinancialExpress.com that investors must buy the fear as inflation is headed down and the rally in dollar is overdone. He added that India may see the return of flows by next month. “We will outperform on the upside in any global rally which could start by mid-October,” Bhasin said.
Rajesh Palviya, VP – Technical and Derivative Research, Axis Securities, told FinancialExpress.com that investors should buy in a staggered manner in the Indian market as sectorial rotation is going to happen. Palviya said that the stock market is now focusing on the defensive sectors and low beta stocks in this volatile market. “Investors can focus on Pharma, FMCG, chemicals and Midcap IT stocks in the current market scenario,” he advised.
Ajit Mishra, VP – Senior Technical Analyst, Religare Broking, told FinancialExpress.com that investors shouldn’t worry about the recent stock market correction. They can rather look at buying opportunities in the sectors such as banking, auto, FMCG and financials which were leading in the recent up move. “Nifty has immediate support at 16800 and next at 16650. On the higher side, 17200 would act as a hurdle in case of a rebound,” Mishra said.
Milan Vaishnav, CMT, MSTA and founder of Gemstone Equity Research, told FinancialExpress.com that it’s time that one can start picking up quality stocks at current levels on a highly selective basis. Key levels to watch out for in near term in Nifty is 17000 and 39000 in Bank Nifty index.
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