Sanjiv Bhasin of IIFL Securities’ contrarian view on when markets will revive

Sanjiv Bhasin’s marketing strategy: After reaching a peak on December 1, 2022, the benchmarks have steadily declined. The Nifty 50 and BSE Sensex were down 3.50 percent respectively after hitting record highs. However, things took a turn for the worse when fears of an increase in Covid-19 cases started making headlines. Due to fresh concerns of Covid, the Indian market went through another wave of selling on Friday last week since 15 December 202.

At a time when a retail investor’s stock portfolio has taken a hit, Dalal Street observers speculate on the market’s bottom. Sanjiv Bhasin, Managing Director of IIFL Securities said that a trend reversal on Dalal Street will happen soon. While talking to the Livemint market team, the market expert said that the market may bounce back strongly on Monday or Tuesday. He said lower crude oil prices and depreciation of the US dollar are expected to support Indian stock markets and advised position investors to start new positions as the market could bounce back anytime on Monday or Tuesday.

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On the reasons for the expected trend reversal at Dalal Street, Sanjiv Bhasin of IIFL Securities said, “Nifty and Bank Nifty have corrected more than expected in the market and fundamentals are in oversold territory. When the market opens next week, the bull is expected to be complacent.”

The IIFL Security expert continued to point out that both the price of crude oil and the US dollar have weakened. This bodes well for India and other emerging markets. He went on to say that there appears to be no reason to help the prices of the US dollar or crude oil return to their lost ground in recent meetings. Therefore, a new market will be formed next week and if the market does not reverse on Monday, there are strong chances of a trend reversal on Tuesday. Therefore, any decline on Monday should be seen as a buying opportunity by positional investors.

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Sanjiv Bhasin said export stocks have gained the most in the recent sell-off and these stocks are expected to preempt the expected trend reversal in the coming week.

On December 1, 2022, the BSE Sensex touched a new all-time high of 63,583 but after that it was steadily nosediving. On Friday, the BSE Sensex ended at 59,845, losing around 3,750 points or 3.50 percent after hitting new highs. Similarly, the Nifty 50 index reached an all-time high of 18,887 on December 1, 2022, while it ended at 17,806 on Friday last week, at this time lost more than 1,000 points or 3.50 percent. However, the Bank Nifty remained strong till December 14, 2022, but after the news of the Covid-19 scare, the banking index also fell from 44,151 to 41,668, a loss of 5.60 percent in about 10 days. did

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Statement: The views and recommendations made above are those of individual analysts or brokerage firms, and not those of Mint. We advise investors to check with certified professionals before making an investment decision.


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