Gautam Shah, CMT, VP-financial services, JM Financial has expressed his opinion on the state of the market and has quite candidly expressed his views on sectors which are a cause of concern for the market. His views on the subject are as appended below:
We have been studying quite deeply the charts and some of the popular sectors in the market. We believe that the three major problem areas for the market right now are banking, oil and gas and IT. Because of these three sectors, we believe that the Nifty itself could not have bottomed out at 4,500. On the weekly or on the monthly charts, you still do not have any evidence to suggest that we could have had a concrete low at around 4500. That is the reason we believe that this is just a counter trend move. Yes, it could extend by another 100-150 points because panic buying could happen now. 4,920 was and remains very important on a closing basis. But I really would not give the market too much upside beyond 5,050. Our view remains that eventually you will see a final low that takes place around the level of 4,300-4,400, which we have been maintaining for a very long time. This is the view for the index.
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