With a little respite from rupee, Indian stock markets recovered for two consecutive sessions last week. The Pioneer spoke to market experts in order understand whether it was just a small pullback of the sentiment and also tried to identify the trend stock markets can show in the last week of August expiry.
Fundamental experts are holding the view that markets are now in over sold territory and expect buying to again emerge at lower levels. Jagdish Thakkar from Fortune Fiscal said, “The markets are currently in the oversold region and there have been signs of value buying which might continue in the coming days. With expiry around the corner, markets will remain volatile but markets might show a pullback as not all investors will be keen of carrying forward their short positions to the next series.”
Expecting a recovery from markets, Jagdish further added, “Banking shares have corrected a lot and now we expect short covering to come in these stocks. Apart from that profit booking will be seen in Information Technology shares in the coming days.” Ravi Rastogi from Globe Capital holds a similar view but emphasised that the Government needs to take a strong stance now and the announcements made, should be very clear, if they want the market conditions to improve. “We are hopeful that some recovery will come in the markets but the nervousness still remains among the investors. Rupee appreciation would definitely improve the market sentiment. As far stock buying goes, all the beaten down sectors will lead the recovery.”
Mangal Keshav Security’s Rajesh Satpute said, “We are expecting markets to remain range bound through the week with Nifty trading between 5600 on the upper side and 5300 on the down side. We are hoping that the bounce back would continue if rupee recovers. Market has corrected a lot and now we might see investors again buying stocks which have fallen a lot.”
While all experts feel the markets might show a pull back, Kunal Saraogi from Equity Trendz has a contrarian view. “Markets might recover a little but rally would not continue as the sentiment is still very week. 5500 is a critical resistance levels for Nifty from where it would again fall down. We expect the markets to be extremely choppy and towards August expiry, Nifty might be trading around 5300 levels.”