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Markets are believing to be in consolidation from this level.

Markets are believing to be in consolidation from this level.


Category : Knowledge Center

Introduction: Market experts suggest that the current bottom of 17,000 on the Nifty50 index appears to be strong, and there is a possibility of consolidation from this level. If the index continues to bounce from this level, it could indicate an upside and activate bullish counts on point-and-figure charts up to 17,800–18,000. However, they are also cautioning that there are still some downside counts open to 16,500, so it would be wise to be aware of this possibility if the price falls below 17,000. Furthermore, they suggest that there are opportunities in the healthcare, pharmaceutical, defence, and banking sectors. They also said to note that some stocks in these sectors are performing well, outperforming the major indices, and displaying a strong trend.

Experts View about the current situation in Nifty 50 stocks: Market experts suggest that the Nifty index has reached a strong bottom at 17,000 based on various indicators. They note that the current uptrend is the fourth corrective move and has seen the same amount of upside so far, but has bounced from the previous demand area, indicating a strong bottom has been formed. Furthermore, they mentioned that the number of stocks above the 200-day moving average in the Nifty50 has increased in the last 15 days, and more than half of the stocks are in a bullish swing according to P&F charts. They suggest that if there is a follow-through action to the current bounce, it might then indicate an upside and, adding to it, activate bullish counts on P&F charts for the levels up to 17,800–18,000. However, they also note that there are some downside counts open to 16,500, and until these bearish counts are negated and bullish counts are formed, the trend is still bearish. They advise traders to be aware of this possibility while deciding on strategies. Lastly, they also mention that Nifty is still underperforming against other major asset classes such as bonds, currencies, and gold, and for a meaningful upside, this picture must change.

Experts View on the Comparison of the Price Movement of the Bank Nifty to the Nifty50: Market experts compare the price movement of the Bank Nifty to the Nifty 50 and note that both have corrected by 10 to 12 percent. However, they also mention that in the short term, the Bank Nifty is outperforming the market. They also further note that all stocks in the Bank Nifty are in the bullish column in the P&F chart, indicating bullish swings, whereas only about half of the stocks in the Nifty are in bullish swings. This suggests that more stocks have turned bullish in Bank Nifty. Additionally, they also mentioned that they track breadth indicators closely, as the number of stocks participating in a trend is usually a leading indicator. However, they also caution that there are stiff resistances on the higher side, which means that there is a possibility of short-term consolidation in the Bank Nifty.

Experts view on the importance of and some useful information about the Noiseless Chart part (Points and Figures): According to a few market experts, they say that they learned early in their careers that seeking consensus in the market is not the path to success. They began exploring lesser-known methods and stumbled upon noiseless charts, such as P&F, Renko, line-break, and Kagi charts, which take only price into account and eliminate noise from the data. These charts can reveal hidden price patterns and provide important information regarding trend and pattern. Price analysis, indicators, and strategies in technical analysis are applicable to these charting methods, making studies more effective and resulting in a significant increase in trade productivity. They also believe that those who have not learned about or understood these techniques are missing out on something valuable when it comes to trading.

Experts View on the Nifty IT Sector: Market experts are expressing caution and uncertainty regarding the current state of the market. While some stocks may be trading at support levels, there is no concrete evidence that the market has bottomed out yet. The IT index has shown a higher bottom, but it is not yet bullish, indicating that other sectors may be performing better. They also suggest that the confirmation of a bullish double bottom pattern in the IT sector's relative strength chart would be a useful tool to confirm a support pattern, but it has not yet occurred.

Experts view on Adani Group stocks: Market experts believe that Adani Group stocks are known for their high volatility and that traders who have a well-defined strategy in place for entering and exiting trades and managing risks may find opportunities to benefit from trading these stocks. However, they also suggest that these stocks are not suitable for newcomers or traders who base their decisions on news or intuition, as they may make emotional trades in these situations. Therefore, traders who have experience and discipline in their approach may consider trading Adani Group stocks, while those who lack experience or a sound trading strategy should avoid them. 

Experts view on sectors for investment: Some market experts are actively seeking trading opportunities in three sectors: healthcare and pharmaceuticals, defence, and banking. They have identified some stocks in these sectors that are looking promising and noted that these sectors are currently outperforming the broader market indices and exhibiting a strong trend. They also believe that focusing on leading stocks within these sectors is a sound strategy, as it can offer a favourable risk-reward ratio, provided that the overall trend of the market (as represented by the Nifty index) is not bearish. However, they also warn that many traders make the mistake of not considering the broader market trend while selecting trades, which can lead to poor performance.

Conclusion: Markets experts say that currently they are expecting the possibility of consolidation in the market, and the current bottom of 17,000 on the Nifty50 index appears to be strong. In short, they suggest that it is a good time to enter the market and suggest investing in sectors like healthcare and pharmaceuticals, defence, and banking as they are actively seeking trading opportunities in these three sectors, but without having a demat account you cannot invest in these sectors. So, here is an opportunity to open your demat and trading accounts with Libord Brokerage Pvt Ltd and start investing in these sectors during this correction period in this market. On the stocks of IT and Adani Group, they believe that although the IT sector has made bottom, there are no signs of going up from here, and on Adani Stocks, they have suggested that new traders and investors should stay away for the present situation. So, overall, other than IT and Adani Group, investors should start investing in sectors like healthcare and pharmaceuticals, defence, and banking and generate a good return in their portfolio.

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