SANDIP SABHARWAL, FOUNDER, ASKSANDIPSABHARWAL.COM
What Next?
Stock markets have been stretched for some time, primarily driven by domestic liquidity. Indian stocks are trading at a record premium compared to global emerging markets, and the overall earnings season has been average. In the near term, the unwinding of global carry trades and the shift of liquidity from risky assets to bonds could lead to valuation corrections across the board.
What to Do?
Large-cap stocks could see corrections of around 10%, while midcaps might correct 12-15% before the value starts to emerge. Investors should be patient with new capital allocation and avoid speculative sectors at this stage.
GAUTAM SHAH, FOUNDER & CHIEF STRATEGIST, GOLDILOCKS PREMIUM RESEARCH
What Next?
The market correction is more of a case of collateral damage but is unlikely to have a longer-term impact as the local positives will ride over the global uncertainty. Domestic liquidity will ensure that shocks relating to global factors will get cushioned and the India story anyway stays intact.What to Do?
We see the current dip as an opportunity for long-term investors. The 23,600-23,100 area offers strong supports. The risk-reward for longs will be lucrative around these levels. Pharma, FMCG, IT, chemicals, and financial services are the sectors that could outperform going forward.
ROHIT SRIVASTAVA, FOUNDER, STRIKE MONEY AND INDIACHARTS
What Next?
As per our short-term swing indicator, only 2% of the stocks are showing positive momentum. This is the lowest reading since 2021. This means that this is a panic low on Monday, and we could get a Nifty bottom near 23,800. Most of this panic revolves around the dollar-yen, which is also oversold with an RSI of 12. This is the lowest reading since 1995.
What to Do?
The readings indicate extreme panic that occurs closer to market bottoms, and recovery should be around the corner in the coming days. Nifty will go back to test 25,000 in the coming weeks.
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