While the pullback in stocks in the last month and a half has priced in uncertainties, there is no reason for the benchmark Nifty 50 to bounce back and rally, according to technical analyst Gautam Shah.
For the benchmark, 16,700 is a key support area, according to Shah, the founder of Goldilocks Premium Research. If that's broken, the index can slip to the 16,000 levels, from where the breakout happened, he said.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
An economic recovery aided by government spending, formalisation and easing Covid concerns propelled Nifty 50 to new records this year. The benchmark, however, has fallen 8% since its last peak on Oct. 18 on worries that valuations are pricey. Concerns around the Omicron variant of the virus added to uncertainty since last week.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The real issue for the market is that the two heavyweight sectors—banking and information technology—are looking weak, and telecom leadership alone cannot take the markets higher, Shah said. He sees more downside for small and mid caps, and if there is any hiding place, it's in large caps, and in particular the telecom twins of Reliance Industries Ltd. and Bharti Airtel Ltd.
Watch the full interview below
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
