ANews Office: Markets have seen broad based rally from march lows, most of rally is due to liquidity, unlocking of economy, recovery and flattening of corona curve and hope of Corona vaccine. Hopefully worst is behind us as Q1 of FY 20-21 felt the burnt of lockdown on earnings. Recovery will be there in as festival season kicks up from Aug and demand will in rise in coming days. There will be risk to this due to unstoppable spread of virus but positive on that is low mortality and good recovery rate.
Markets will remain rangebound from here and chances from upside from here is limited given concerns of lockdown on economy. only companies with strong balance sheet will command premium in coming days which market will be willing to pay.
Markets may see correction from current levels due to global and local factors. Dollar is at 6 month low and any revival in that may see correction. Commodities gold and silver are at time highs and possible some highs before correcting.
Levels for Aug month will be 10,300 to 11,300 if it breaks 10,270 then we may see more pain. Suggestion for investors will be to book profits and sit on cash and wait for right moment to enter, also try to add good shares in SIP manner don’t try to time markets. Sectors to keep in mind is consumer oods,pharma, IT, Telecom,chemical,FMCG, negative outlook on labour intensive sector like construction, Travel, Hospitality and financials.
DISCLAIMER- Views and Levels mentioned above are my personal study and I have every right to be wrong. I am not SEBI registered Financial advisor yet and theses views are for educational purpose hence please take decisions of your hard-earned money by yourself.
Sunand Gopal Kapila, Financial advisor