The moment market starts going down all kind of passive voices start coming from all the nooks and corners and every one starts predicting the demise of the market. However one must see it in the larger perspective that a 10% fall in the market at current valuations will appear as a fall of 900 points. So do not get bogged down by the Nifty fall figure as a correction is always healthy for the market in the long term.
The key concerns which for the time being can have a toll on the market are as listed below:
The key concerns which for the time being can have a toll on the market are as listed below:
- Rising concerns over a subdued growth in the earnings of the domestic corporates.
- A possibility of a delayed revival in economic activity.
- Unseasonal rains and an initial forecast of a weak monsoon for this year.
- The biggest concern is the uncertainties related to the minimum alternate tax applicable to the foreign institutional investors retrospectively added to the weakness in the Indian markets.
As of now the CNX Nifty has broken the floor of the rising trend, which indicates a weaker initial rising rate. The index is approaching the support at points 8000, which may give a positive reaction. The index is assessed as technically slightly positive for the medium long term.
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