The market corrected a sizeable percentage in the last few trading sessions giving opportunities to long-term investors to enter the market selectively. Though there is no definite signal of correction to be over so one must adopt cautious approach and buy in trances at this level. The market is still below 16600 on the Sensex and 4950 on the Nifty. Only on couple of close above 16600 we can see a move to 17000 -17300 zone where one should again take a review of the stock portfolio. On the downside one can expect support around 16200 and 4850-4870 range. So unless the index surpasses such levels the timing of next up-move is not clear. The gut feeling is there is still some downtrend left in the market which may resume after a short break prior to budget.
The market internals indicate a higher turnover due to the selling. The number of trades was higher and the average ticket size per trade was higher, indicating a selling bias. The capitalisation of the market was lower in line with a downtick session. The f&o cues show the bears squaring up shorts on declines.
Stock Ideas: Long-term investors should give a look at telecom sector, which is presently in a bearish/consolidation phase. Handsome gains can only be achieved with patience and conviction. If one believes in the long-term growth, prospects of telecom sector it must not be overlooked then at this point of time. Slow and steady accumulation at every dip is the best technique. But one should stick with the market leaders (bharti, idea, rcom) unless there is fancy for any particular scrip the sector.
Happy Investing!
By TheStockWorld.com
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Filed under: Stock Market Updates
