Market Outlook: After rising 6% this month, Nifty saw pressure from upper levels yesterday. Sensex- Nifty closed with a decline. Sensex fell by 345 points and Nifty closed with a slip of 96 points. Besides, pressure was also seen in midcap and smallcap shares. In yesterday’s session, 20 out of 30 Sensex stocks were sold while 32 out of 50 Nifty stocks were sold. At the same time, selling dominated in 11 out of 12 shares of Bank Nifty.
In such a situation, while talking about the further movement of the market Deepak Shenoy, Founder and CEO of CAPITALMIND Said that there were signs of recovery of the economy in Diwali this year. However, there is still uncertainty regarding the trade deal. The market has not given any return for the last 1 year. Only increase in earnings has been seen. The results of some companies so far have been good. Selling by FIIs has decreased slightly. This is the reason why market confidence has increased to some extent. However, the chances of a one-sided rally in the market seem less. I believe that the market will see a rally only after 1-2 quarterly results, before that the market will be seen consolidating.
Talking on the metal sector, Deepak Shenoy said that a lot of growth was seen in “Precious Metal”. Due to trade tension and geopolitics in US and China, there was a sharp rise in the prices of gold and silver, but in the last 3-4 days, there has been a lot of downside correction in the precious metal. The rise in other metals like aluminum is due to news. The supply from the island plant has been temporarily stopped. There will be an impact of 100kt on production due to the Iceland plant. There has been a power shortage at Iceland’s refineries. And such news will settle down in a few days.
Deepak Shenoy further said that I do not think that we should pay much attention to these in the long term because these metal stocks are cyclical. Metal should be bought at high PE and sold at low PE.
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