Mumbai: The Indian market ended February series on a weak note. The Nifty swung as a pendulum between negative and positive territories before closing with a 20-point cut.
Today was a tough session that saw the Nifty lose its stronghold over the 5,500 mark. The NSE benchmark lost 22 points or 0.4 per cent to end at 5,483. The Sensex too closed in the red at 18,078.5, down 66 points or 0.37 per cent.
Generally, the last day of any series is volatile for the market. So, experts are not surprised.
Unperturbed by today's volatility, for portfolio manager PN Vijay the strategy is still to buy on decline. According to him, global as well as domestic factors are supporting the market. "The US has been continuously giving better economic data for the last three months. The Dow is touching 13,000, the highest it reached in the previous bull market and NASDAQ is at a multi-year high. The Europeans have not solved all their problems, but the world is convinced that the Europeans have the capacity to solve their problems. So, overall the sentiment in the developed markets is pretty positive. That's rubbing off on India through flows. Also, in India, we are all feeling that it's just a matter of time before we get another CRR cut. So, all these macros are playing into and making this a buy on decline market," he elaborates.
The markets don't go up or down in a straight line. After the recent run up, a correction was warranted and that came in yesterday.
According to Rahul Mohindar of viratechindia.com, the uptrend is still intact. He says, 5,430 is an important level on the downside. "The market is going to be choppy. Between 5,600 and 5,430 level, we might mark sometime, probably two-three sessions. The call from here is to wait and see if we can once again breakout towards 5,600 or break down below 5,430. We are in that state of flux. Traders are going to be light footed at these levels," he asserts.
Meanwhile, Siddharth Bhamre of Angel Broking expects short covering in the earlier part of March series. Hence, he feels that one should not short this market.
Comments
0 comment