2 weeks Ago
"Even power sector is also looking weak at this moment, most of the power stocks are looking bearish. Tata Power has broken its important support area, here also we could see furthermore fall. So, these three sectors, power, FMCG, and automobile these three sectors can be looked at for furthermore downside in the coming sessions," says Rajesh Palviya , Axis Securities .
What is your own sense, of course the Nifty Bank has seen quite a sharp hit, we are already looking at a 1000-point decline, in excess of that in fact but what are the other sectors which are looking the weakest to you and if the market were to fall further, what is going to contribute to the drag the most? Rajesh Palviya: So, looking at the fall we believe that a part of this banking stocks, auto as well as FMCG these two sectors are also looking bearish. The way automobile index has given a breakdown of their upsloping channel, there could be furthermore follow-up selling we could witness in automobile stocks also. And FMCG whole basket is looking weak and we believe that here also there could be furthermore pressure as most of the largecap stocks from the fmcg basket are now almost trading near to their critical support area and some of these stocks are already broken their weekly as well as the monthly support area.
So, these two baskets can be furthermore dragger for the Nifty and now Nifty is almost trading at 200-day moving average, so any further fall below 23,500 can open the furthermore downside for Nifty also towards 23,100 to 23,000 level. So, there is no as such halt at this moment and across the board supply pressure is happening in the market. Even power sector is also looking weak at this moment, most of the power stocks are looking bearish.
Tata Power has broken its important support area, here also we could see furthermore fall. So, these three sectors, power, FMCG, and automobile these three sectors can be looked at for furthermore downside in the coming sessions. Stock Trading Options Scalping Made Easy By - Sivakumar Jayachandran, Ace Scalper View Program Stock Trading Candlesticks Made Easy: Candlestick Pattern Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Ichimoku Trading Unlocked: Expert Analysis and Strategy By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Mastering Options Selling: Advanced Strategies for Success By - CA Manish Singh, Chartered Accountant, Professional Equity and Derivative Trader View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading RSI Made Easy: RSI Trading Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.
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Will they be the first to recover as well you think? Rajesh Palviya: No, structure is very weak for most of the PSU stock in this decline and there would be some recovery once the market supply pressure halts at a certain level. But the sector which are still holding the ground on the technical front like sector like IT, pharma, these two sectors are still able to hold out ground at higher level and able to hold out on the short-term chart. So, first recovery would likely to be in these two sectors only and then gradually once there would be stability in Nifty as a benchmark and then only we could see some recovery to take place in PSU basket also.
But the structure is very weak for most of the PSU stock and the way this sector has corrected in last couple of months, it may take time to recover. It will not recover faster. So, in recovery, we would be looking to buy stocks from pharma as well as from the IT sector.
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