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Rohit Srivastava, Strike Money Analytics & Indiacharts, says “I do not think we are in an uptrend right now and therefore, investors really need to be careful and aware of the idea that this is no more a buy-the-dip market because that has become the habit that has been rewarded again and again and again but I do not think that will end up being the case this time around.”

There is a bit of a recovery in the market right now though the Bank Nifty refuses to come out of its consolidation. What is your view? Is the market going to go a bit sideways or do you see more risk to the downside right now for these indices?
Rohit Srivastava: I am pretty clear that after last week’s selloff where we actually broke the 21,450 mark that the overall trend has turned down and every bounce that we end up getting ends up becoming a selling opportunity, so that is very much what we are seeing today. We can only argue whether this bounce is over or will you test 21,500 before heading down again. That is about the very short-term thought process. But overall, I think you will go lower.

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You may break the lows that we have made today, whether you do that today, tomorrow or later that is a completely different thing but I do not think we are in an uptrend right now and therefore, investors really need to be careful and aware of the idea that this is no more a buy-the-dip market because that has become the habit that has been rewarded again and again and again but I do not think that will end up being the case this time around.

Which are those spaces which investors should look at cutting their profits or actually booking their profits right now?
Rohit Srivastava: So, the gains have come in the best performing stocks of the recent period, month or quarter, and the top of the line in that is that the PSU stocks have actually done pretty well over the last month or so. Even if we look at a slightly wider period of, say, three months, you will probably find the smallcap and microcaps at the top of the list, so even that you would want to look at shaving off a bit.

So, yes, these are places to reduce whatever has performed because that is where your gains are. So, where you have your gains is where you would want to really cut back.

But where should one redeploy? Would you say pharma as a pack is looking very strong or even IT for that matter which has been a bit of an underperformer? Would you make a bet in these segments?
Rohit Srivastava: So, not really in a big way. Pharma is the defensive sector. I will not consider IT as defensive because it does get impacted by what happens around the world, which is really the risk right now. The global economy is slowing and then the IT sector will continue to face some kind of pain.

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