Smart Rebound in the Stock Markets!
Sep 03, 2013 | 16:11 PM IST
Sep 03, 2013 | 16:11 PM IST
We witnessed a sharp pullback from the panic low of 5118 level of Nifty. Correction was led by bank measures like HDFC bank, ICICI and others. Pullback was led by metal sectors and short covering in the banks.
Nifty has reverted from the resistance level of 5550 today. There is a mixed bag of beaten down shares today in the market. Triangle breakdown on monthly chart of Nifty can clearly be observed.
Whether in deep downtrend or not can be confirmed only after end of Q2(Sep 30) if we see Nifty closing well below 5550.
A hawkish sentiment followed by disappointment is pertinent among the investors and there is not one but most of the macroeconomic factors guiding this mood.
Festive season has not added to order booking of consumer vehicles. Rupee has depreciated to lowest level of 68.80 and gave a pullback till 65.70 just to give in all the gains and cross level of 68 again. Crude rally is being speculated again. There is no rescue from Central bank as inflation is still on the boil.
With GDP at 5year low of 4.8%, not easing CAD has increased downgrade fears. Real investors who keep shifting asset classes have probably eyed the crude rally and higher prospectus of US equity markets.
We feel that banks and metal stock are falling down to a level which can be good bargain price. If the down trend is established there can be a fall by gravity in each and every counter. Investors should avoid any kind averaging strategy unless any clear indication of the market trend
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