FY19 earnings could be anywhere between 18-20 percent and if those come through, then one could see selective opportunities in financials, consumer discretionary, autos etc.
The week gone by very difficult for bulls and the market was decisively down at the end of the week. It was a 2.6 percent cut for the week. Financials were the worst hit. Moreover, the market did not participate in the global run.
So to analyse the week gone by and what to expect from the market going forward,However, going forward in the coming months as people get confidence that recovery is building on itself, there are earnings upgrades, the market may take its next leg up in the first quarter of next year.
As people get more confidence on earnings recovery, there will be more allocation from foreigners towards emerging markets including India. Retail investors have also been increasing their allocation to domestic equities.
FY19 earnings could be anywhere between 18-20 percent and if those come through, then one could see selective opportunities in financials, consumer discretionary, autos etc.
Gujral clearly believes the 10,100 on Nifty is just a formality and even if Nifty bounces, it will be a shallow one, so one should short it. 9700 on Nifty is the 200 day moving average and that becomes the port of call.
The Nifty Bank also looks vulnerable because it is sitting on a bigger rally and bigger out performance. Moreover, the negative news is also relative to financials and fiscal deficit etc. If Nifty gets to 9700, the Bank Nifty will be likely close to 24,000.
However, if people are still looking at buying opportunities when the market falls, then Rupa is a buy with a stop of Rs 470 and target of Rs 510. Jubiliant Life has also bottomed out, so it is a buy with stop of Rs 680 and target of Rs 715.
MORE WILL UPDATE SOON!!
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