The stock market closed with a decline for the third consecutive day i.e. on January 10. The market suffered a loss of Rs 13.51 lakh crore in the last 3 sessions. Both the indices have entered a phase of correction. A stock or equity index is considered to be in a correction phase when it has fallen below 10% from its recent high. Now we have talked to experts about where the market will go from here.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, ‘In view of the ongoing uncertainty regarding the activities of America’s newly elected President Donald Trump, the stock market is not likely to remain bullish in the near future. FII selling is unlikely to provide any relief. This will continue to put pressure on the market.
Another expert said, ‘Since the quarterly results season has started in the market, stock based activities can be seen here. TCS results indicate that the IT sector will remain strong. The results of major banks will be better, but due to selling by FIIs this sector will not perform as per the results. Pharma and select auto stocks like Eicher, Mahindra & Mahindra and Bajaj Auto could be outperformers in a weak market.
Akshay Chinchalkar, Research Head, Axis Securities, said, ‘The Nifty index has clearly gone below 23,583. This clearly means that the level of 23,821 is an important resistance level on the upside. Bears will target the zone of 23,238-23,355. According to Nagraj Shetty, ‘During the period of ups and downs in the stock market, the trend of Nifty continues to be negative. The lower support level may be around 23,260-23,000. Immediate resistance will be at the level of 23,600.
Expert Rupak Dey said, ‘Sentiments are likely to remain sluggish in the short term and the index may go towards 23,300 or 23,000. On the upside, resistance is at 23,550–23,600.