Compared to the record highs each hit in October 2021, it is difficult to wonder about the top 9 stocks to buy now, as the market has gone haywire.
To believe the Indian stock market report, Nifty and Sensex have tanked around 2.5% each. This has happened because of the rising threats of the omicron variant of coronavirus. Based on the sudden arrival and spread of omicron, the sale of global equities was prompted before the end-year holidays.
In the first ten months of 2021, Sensex rose to an all-time high with a growth of more than 20%. This specific rise was aided by the attempts of the central bank to stabilize the economy by the contribution of funds. The surge was also a result of the steady purchase of millions of first-time investors. In the recent past, Nomura Holdings Inc. and Goldman Sachs Group Inc. have drastically lowered their outlook for Indian equities and, as a result, have flagged pricey valuations.
According to the words of the Vice Chairman at GCL Securities, Ravi Singhal, "This crash in Nifty and Sensex can be attributed to three major reasons — rising cases of Omicron, FIIs, and FPIs fishing out money from the Indian equity market and rise in inflation (both domestically and globally). In the first and second wave of Covid-19, liquidity and inflation concern was non-existent. But, in the current selloff, there are rising cases of Covid along with liquidity crunch and inflation."
He further says that the dilution in the supply chain can further surge the overall inflation even more. He adds, "In that case, NSE Nifty may down up to 16,000 to 16,200 levels. However, there can be rebound expected from these lower levels, and the rebound may lift NSE Nifty to 17,200 to 17,500 levels."
A strategist at Omniscience Capital Advisors Pvt. Ltd., Vikas Gupta, commented, "All things seem to be coming together for Indian markets, from tax-loss harvesting by the foreign investors to global volatility and the impact of virus spread." he expects the volatility to continue within the Indian markets in the following weeks. Fund managers are trying hard to reset portfolios and book profits before the new year's arrival.
According to the observation of the founder of Tradingo, Parth Nyati, "Indian equity markets are witnessing sharp correction on the back of rising worries of omicron, hawkish global central banks, and most importantly relentless selling by FIIs. We are seeing the first meaningful correction in the current bull run, and this correction has completed more than 10% from highs. However, we are in a structural bull run where every correction is a great buying opportunity."
He further added that from a technical standpoint, "16700-16400 is the first strong demand zone where we can expect a strong bounce-back while 16200-16000 should be a worst-case scenario. On the upside, 17000 will be immediate resistance while 17250 will be a critical hurdle; above this, we can expect a massive short-covering rally. Our top sectors to bet on in ongoing correction are capital goods, infrastructure, real estate, telecom, wealth management, banking, and technologies."
According to the VP of Mehta Equities Ltd., Prashant Tapse, the crash that has taken place is nowhere near over. He said that the most significant support for Nifty is observed only in the 15871-16000 zone.
Provided the current condition of the stock market, anybody who is new to the stock market needs to take proper online stock market classes before investing his hard-earned money. Detailed Research is always a must.
Published by Tony Stark