Markets climbing wall of worry
IANS 31 October 2023
Buy on dips is the strategy that has worked well in this highly volatile market. In spite of multiple crises, risks and uncertainties, the market has been bouncing back smartly as evidenced by the 290 point rally in Nifty in the last two days, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Globally, stock markets have refused to discount the West Asian crisis aggravating into a global catastrophe impacting markets.
Three signals from the market are significant: one, the dollar index is down 0.40 per cent; two, crude is down 3 per cent; and three, safe haven buying in gold is limited. The takeaway from these market signals is that the market is climbing all walls of worries and a collapse triggered by geopolitical events is unlikely, he said.
But investors have to be cautious since this is the time of war and unexpected events may happen. Even while remaining cautious investors can slowly accumulate high quality large caps where safety is high. Financials are fairly valued, he added.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty for the second consecutive session witnessed a decent pullback to close on a slightly positive note with sentiment little bit eased out with some of the major frontline stocks showing improvement in the bias and indicating a trend reversal.
The index would need a decisive move past the 19,200 - 19,250 zone to establish some conviction and overall improve the bias to anticipate further rise. The support for the day is seen at 19,000 levels while the resistance is seen at 19,300 levels, Parekh said.
BSE Sensex is down 162 points at 63,949 points on Tuesday. Sun Pharma is down more than 3 per cent, M&M is down more than 1 per cent.
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