INSUBCONTINENT EXCLUSIVE:
once again, with the Nifty Smallcap posting losses for the eighth time in the last nine weeks
The overall market continues to be divergent with leading indices trading 2-3 per cent below their all-time highs while midcap and smallcap
benchmarks have corrected 15 per cent and 23 per cent, respectively.
What is in store: While the Nifty is just 3 per cent below its all-time
high, the index is finding it hard to retake its previous high of 10,929 amid persistent foreign institutional selling
However, the index has managed to trade constructively along its strong support of 10-week moving average
With the OPEC nations agreeing to an increase in oil production, the market sentiment could see an improvement from here on
That said, until we see a decisive breakout by the Nifty above 10,930 levels, the range-bound kind of trade could continue
On the downside, 10,550 and 10,400 serve as crucial support levels.
What could investors do: Since we are yet to see a clear trend emerge on
the upside, investors should restrict themselves to quality companies in the large-cap space
These would be the ones that have strong business models allowing them to deliver solid growth rates quarter-after-quarter and
Such companies generally have strong doubledigit sales and earnings growth, high return on equity and rising institutional sponsorship
While the overall market remains range-bound, quality stocks from the financials and consumption segments have done well in recent times
Some of the fundamentally solid names that continue to display strength are Bajaj Finance and Page Industries.
