INSUBCONTINENT EXCLUSIVE:
since the beginning of the month
The current correction conclusively proves that a bigger uptrend is still ahead and this is just the first correction after the corporate
The market is undergoing sectoral rotation and the auto sector is awaiting an up-move once there is some clarity on the scrappage policy.
At
It is better to avoid the disinvestment bandwagon from a trading and investment perspective.
On the international turf, US markets seem to
be hovering near lifetime highs and are unperturbed by political skirmishes, given the fresh testimonies, proving that the US President
might have misused the power of his office for political gains
Eventually, this may lead to his impeachment, but the overhang till that time may keep the US and world markets on the tenterhooks.
Event of
the WeekTelecom players, once considered untouchables, have sprung back to life though management and business realities are still very
bearish given the accumulated losses and huge debt that might take a very long time to come back to healthy levels
Turnarounds happen overnight in the market, at time when the ground reality is different and, therefore, this sector will emerge as the
biggest underperformer for weeks to come
Traders and investors may place bearish bets accordingly.
Technical OutlookNifty50, Nifty midcaps and smallcaps are clearly forming a
corrective pattern along with majority sectoral indices, which are also moving sideways
Trading in such a phase can cause whipsaw losses, which will all the more confirm that a correction is under way
Midway through the week, Nifty50 made a Doji with over 30 per cent increase in volume in cash market, which further confirmed that FOMO
Traders should ideally avoid trading during such low volatility corrective phases.
Expectation for the WeekThe market is likely to remain
lackluster in the coming week
It will see movements based on news and events that are likely to transpire from the government in terms of economic policies, disinvestment
and international geo-political events
In the short term, the bourses would over-react to news which can make contra-betting a profitable proposition.
For instance, the real
estate package announced a few weeks earlier has thereafter led to a decent correction in realty stocks taking them even lower
This provides good contra investing opportunities
Statistically, November is a bullish month, but the month-end going ahead looks rather quiet and dull.
Nifty50 closed the week at 11,914, up
