The Asian Indices are witnessing down pressures mirroring losses in Chinese markets due to credit tightening and South Korea fighting with inflationary pressures.
Analysts were already expecting a profit booking trends owing to soar prices. Metals and commodity index also witnessed volatility with gains in US Dollar. The sectors to watch post correction are auto, capital goods and construction. These sectors are set to rally after the Chinese market recovers, Euro issues improve and Dollar strengthens in coming months.
According to experts profit booking was on expected lines as valuations were at all-time highs. They are advising retail investors to exit metals and other commodities which are under pressure due to gains in US dollar. The sectors to look at post correction are auto, capital goods and construction space. Long term investors should continue to stay put, they said.
With Metals at their high it's advised for retail investors to exit at these levels whereas long term investors can hold it till the market recovers. Market has a strong support at 5940 levels and it's difficult to sustain at current levels which rallied with foreign liquidity in emerging markets.
Weakness in global markets can take Nifty to 5700-5800 levels. FIIs like CLSA believe any corrections in emerging markets are buying opportunities. High beta sectors like metals and realty are more prone to slow down there speed.
The Metal and commodity market are expected to bounce back but till then it's advised to wait and watch the metal that are losing sheen at current levels.
Source – ET
Analysts were already expecting a profit booking trends owing to soar prices. Metals and commodity index also witnessed volatility with gains in US Dollar. The sectors to watch post correction are auto, capital goods and construction. These sectors are set to rally after the Chinese market recovers, Euro issues improve and Dollar strengthens in coming months.
According to experts profit booking was on expected lines as valuations were at all-time highs. They are advising retail investors to exit metals and other commodities which are under pressure due to gains in US dollar. The sectors to look at post correction are auto, capital goods and construction space. Long term investors should continue to stay put, they said.
With Metals at their high it's advised for retail investors to exit at these levels whereas long term investors can hold it till the market recovers. Market has a strong support at 5940 levels and it's difficult to sustain at current levels which rallied with foreign liquidity in emerging markets.
Weakness in global markets can take Nifty to 5700-5800 levels. FIIs like CLSA believe any corrections in emerging markets are buying opportunities. High beta sectors like metals and realty are more prone to slow down there speed.
The Metal and commodity market are expected to bounce back but till then it's advised to wait and watch the metal that are losing sheen at current levels.
Source – ET
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