Nifty has seen three major dips in the last six months but the ongoing one is probably the ugliest having done widespread damage. The decline has been synchronised across sectors & market caps. While the Nifty is back close to the Mar ’22 lows we do not see concrete signs of bottoming out as yet. We only see just some oversold readings that call for a pullback, which might not sustain for too long. This bear market would not end the textbook way.
Keep more room on the downside with 15500/15100 the working numbers. Deeper worst-case levels are now also a possibility.
Resistance seen at 16140/16400.
The FMCG, IT, PSU and Unlock sectors are the best long bets.
Banks/Metals/Pharma remain weak.
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