Looking at the recovery in the economy, it seems that in the next 1 year, there will be a strong boom in the cyclical sectors related to the economy. In such a situation, investors are advised to bet only on good valuation and fundamentally strong stocks of sectors like IT and banking. Sumeet Bagadiya of Choice Broking said this while talking to Money Control on the future movement, condition and direction of the market.
He said that the market seems to have become expensive at this time. In such a situation, investors should be cautious and take investment decisions. One should invest money only in such stocks which are fundamentally strong and which are available at the right valuation.
Foreign money flow will be visible
Bagadia said that with the continuation of the US Fed’s soft stance, we will see the flow of foreign money in the Indian markets in the near term. But if on the other hand developed countries adopt the policy of increasing interest rates in an aggressive manner, then it can have a negative effect on the Indian markets.
Outlook positive on the realty sector
He further said that economic recovery and low interest rate are some of the factors due to which realty stocks are seeing a rally. This factor will continue to work in future also. In view of this, our outlook on the realty sector is positive. On every downtrend, we should adopt a buying strategy in quality realty stocks from a long term perspective.
Need to do business with caution
He said that Indian markets are constantly in a bullish trend and highs are being placed on highs. As long as there is no major negative trigger activated in the market, this rally will continue in the market. The market is seen above its historical average. Keeping all these things in mind, investors now need to trade with caution. At present, resistance is seen for Nifty at 17,500 level while there is support for it at 17,200 on the downside.
He further said that Nifty is currently seen in Uncharted Territory. The psychological level of 17500 will act as a resistance for this. If Nifty breaks this level then it can see us moving towards 18,000-18,500 in near term. On the downside, there is a big support for it at 16900.
Read Hindi News online and watch Live TV on Hindi website. Know news related to country and abroad and your state, Bollywood, sports world, business.