Market may see some technical rebound on Monday: Jayant Manglik ?
[Editor: On last Friday, I have already given a buy on Nifty_Futures from the support levels. Investors should start investing funds in the markets as of now, because going forward, the fundamentals of the economy is expected to improve. Also, any loss which you made earlier, can be covered up in just few trades. For example look at the the share price of B F Utilities Ltd (Rs.412.90), which closed at the Upper Circuits on last Friday even though the Indices tanked. If you remember, it was recommended around Rs.129-130, only few months back. In a similar way, money can be made over a period of time, through many such scrips---what is needed is only patience and expert hand]
At the close, the benchmark 30-share index, BSE Sensex declined 210.03 points or 1% at 20,715.58 with 24 components registering drop. Meanwhile, the broad based NSE Nifty fell by 68.65 points or 1.10% at 6,168.40 with 46 components posting drop.
Commenting on the outlook, Jayant Manglik, president-retail distribution, Religare Securities said, "On the last trading session of the week, Nifty was seen struggling from the beginning and kept the negative bias intact till the end. It was seen as reaction to double whammy of contraction in IIP and surge in Consumer inflation. Moreover, sentiments also remained dampened after RBI Governor Raghuram Rajan showed concern over rise in inflation and weak industrial growth and vowed to adjust the credit policy carefully.
Due to successive decline in the last four sessions, we may see some technical rebound on Monday especially in oversold positions. The immediate support at 6100 in Nifty strengthens our stance.
The recent decline in Midcap and Smallcap segment has somewhat pushed the retail investors on their back foot again. However, we are advising our clients to keep a slightly longer investment horizon and accumulate quality stocks irrespective to these corrective phases."
