The current crisis should not last too long, as was seen during the COVID 19 pandemic. In such a situation, there is little hope of damage to the country’s economy in the long term.
Stock Market Strategy: The stock market has seen pressure since the beginning of this year. But this pressure increased in February, when Russia started siege of Ukraine. There has been a big decline in the market since February and the market cap of companies listed on BSE has decreased by more than Rs 16 lakh crore. At the same time, in just 5 trading sessions of March, the market cap has declined by about 10.5 lakh crores. Experts say that this fall in the market may increase further. The level of 15500 is very important for Nifty going forward. If it falls below this, the fall can be big. For the time being, in this correction, one should keep an eye on the strong stocks of the domestic economy facing sector.
Market down 15% from its high
Vineet Bagri, Managing Partner, TrustPlutus Wealth, says that the Indian stock markets continue to decline along with other major indices. Indian markets are now down 15 per cent from their highs. India imports more than two-thirds of its oil requirements. In such a situation, increased crude prices will increase the country’s trade and current account deficit. Let us inform that on Monday, crude touched the level of $ 138 per barrel. This is 14 years high. Due to this, the fall in rupee will also increase, inflation will increase. However, one factor is that the current crisis should not last too long, as was seen during the COVID 19 pandemic. In such a situation, the country’s economy is less likely to suffer long-term permanent damage.
long term buying opportunity
Tradingo’s founder Parth Nyati says that due to the geopolitical tension in the market, many factors are turning negative. Selling by FIIs, high energy prices, rise in commodity prices, inflation and depreciation of rupee are the main ones. Geopolitical tension is still one of the biggest issues, otherwise we are in a structural bull market, where meaningful corrections are being seen. This is a buying opportunity for long term investors.
where nifty can go
Partha Nyati says that technically the overall structure is weak. There is now a very important support for Nifty at the level of 15500. If this level breaks down, then Nifty can weaken till the level of 15000. On the other hand, in the worst case, Nifty can weaken till the level of 14000. On the upside, now 16300-16500 is the first resistance level. Nifty will move towards 17000 only if it remains above this.
where to invest
Parth Nyati advises that investors should now focus on the better stocks of the domestic economy facing sector. These sectors are capital goods, infrastructure, real estate and banking. At the same time, opportunities have been created in the IT sector after the correction. Auto sector is providing favorable risk reward ratio. The top picks include Thermax, KNR Construction, LT, SBI, ICICI Bank, Infosys, KPIT, Tata Power, Tata Motors, Minda Industries, SBI Life insurance, Bajaj Finserv, Canfin homes, Sobha, Brigade Enterprises, Kajaria Ceramics and Reliance.
(Disclaimer: Stock investment advice is given by experts. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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