Nifty is very near to the September 2022 lows but Bank Nifty is still 5 percent away from there. What are the chances of Bank Nifty hitting its September 2022 lows?īank Nifty has actually shown outperformance as compared to Nifty during the fall from the top. A few stocks from the space that can be a good bet are Maruti, Eicher Motors. But any buying should be done with perspective of atleast 1.5 to 2 years as we can see consolidation for 3 to 6 months. The interest rate cycle might also peak out soon. Recent correction has over past few weeks is with momentum and so we might see another 5 percent to 7 percent dip from here on.įrom long term perspective these corrections can be good opportunity to add on to quality stocks in staggered fashion. Prices – wise we have seen nearly 11 percent down move. We are yet to see break above resistance of 17,350 which will be first sign that downtrend is maturing and positive reversal can be expected.Īre you taking positions in auto space that corrected more than 10-11 percent from high on February 1 and is looking oversold now?Īuto stocks have faced the heat of rising interest rates and has shown correction since September 2022. Over short term we can expect more consolidation with support near 16,650 levels. This simple way of looking at price and time indicates the medium term trend can soon turn back on upside and we might turn bullish first before touching 16,000 levels. This shows that the rise was faster less time consuming whereas the fall is slower. On contrary, the rise from 16,820 to high of 18,887 took only 39 trading days prior to December 2022. It has corrected nearly 11 percent from the highs and has taken 79 trading sessions to reach 16,820 levels. Nifty topped out in December 2022 after touching lifetime high levels of 18,887 levels. Do you expect the Nifty50 to break 16,000 first in coming weeks, before getting into bullish mode? The market seems to be in a consolidation mode after recent correction. On the auto space, the Chartered Market Technician with strong expertise in Elliott wave analytics says the recent correction over the past few weeks is with momentum and so he might see another 5 percent to 7 percent dip from here on.įrom a long-term perspective, these corrections can be a good opportunity to add on to quality stocks in a staggered fashion, he believes.įor next month, his top 3 picks will be ITC, Cyient, and Sun Pharma. "We are yet to see a break above resistance of 17,350 which will be the first sign that the downtrend is maturing and positive reversal can be expected." Over the short term, he says one can expect more consolidation with support near 16,650 levels. "The medium-term trend can soon turn back on upside for Nifty50 and we might turn bullish first before touching 16,000 levels," Ashish Kyal, Founder and CEO at Waves Strategy Advisors says in an interview with Moneycontrol.
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