Market Outlook: Experts on where markets are headed

Market bracing itself for a short-term decline: Mitesh Thacker

What would your Nifty strategy be given the kind of global setting we are kick starting the day in?

Very clearly it looks weak. Now time and again, we have talked about 5400-5380 as an important support level. We have seen a couple of swings bounce back from there but there are two data points, which I would like to throw up over here, which are very important. The first is that the 5500-5400 put yesterday recorded a cut in open interest to the tune of 25% and 7%, which is about 22 lakh shares on the Nifty. While we saw strong additions on the call open interest side. Clearly the market is bracing itself for a short-term decline. The adjustments are there in place. While today we have an even day in terms of policy announcement but the statistical data is poised towards the downside. Now keeping that in mind, I would probably wait for 5380 level to be taken out after the policy announcement. If the market remains below that, I would be concerned and would look to buy into some kind of put options or make some kind of bearish strategies on the index.


Current correction phase looks like a bear market: Sudarshan Sukhani

Would that be your strategy that use this opportunity to actually buy into some counters that you have been eying?

Sudarshan Sukhani: No, I have to differ. I do not think the correction is over yet. What the market is doing is coming down, making a trading range, again coming down, making a trading range. So the next step for it is to come down again. First 5325 which was the low in this decline is going to be taken out and then the final low was 5175, that low also will be taken out. This decline is not over. By the time we end, this correction will feel like a bear market. So far, it does not feel like a bear market. Remember we rallied from 2200 to 6300 and I have said it so many times, everyone remembers it. This 4000-point rally will be corrected by a decline of at least 2000 or even 2500 points from the top. So we have significant downside left.


Good time to invest for the long-term: Ashwani Gujral

What is the call on markets right now?

Ashwani Gujral: Things are looking great because this has to happen. The house needs to be burnt down for a fresh construction. So commodity prices will come down only when there is crisis in the world. If you are not worried about the next 100-150 points on the Nifty, we have seen institutionally heavy selling has not been seen and we have been in this correction for last 8 months. So the bull market was 18 months. The correction has been 8 months. We have corrected 18 to 20% of the move that we had on the upside. So these are good times to start accumulating for the long term. 5200 to 5400 is a very very strong zone and out here, a lot of people institutional and others, longer term investors are likely to come in.


Source: Economic Times

Thanks and Regards,
Sanchari Sinha,
Intern at DENIP Consultants Pvt. Ltd.