Smash at 15K?  This is where you might find valuation attractive

Smash at 15K? This is where you might find valuation attractive – Mail Bonus

Nifty50 fell 500 points on Monday, prompting investors to wonder where the bottom lies for the NSE barometer.

Technology charts indicate some support at 15,670, followed by the 15,400 level, but analysts do not rule out a revision at the under-15,000 level. Basically, although analysts think it is pointless to predict a bottom at this stage, given the global headwinds, a value of around 15,000 on the index would look attractive, analysts said as soon as they advised investors to be relieved for now. .

“Maybe 4-5 percent more, if the indices fall, we could start nibbling because we do not know exactly where the bottom will be. What we need is to start buying when we think the result is less than the rise. It could come close. 15,000 points on Nifty50, “said Sandip Sabharwal,

Sandeep Bhardwaj, CEO, said there was a big gap between inflation of 8.6 percentage points in May and the 10-year yield on US bonds, which is 3,187.

“To bridge this huge 5.4 percent gap between the two, the central bank must curb inflation by raising interest rates. If the 10-year US bond yield rises to 5 percent, we would see balance sheets become stronger for the US 2-year yield. “Government bonds have exceeded 3 percent and are now at their highest level since 2007, and the 10-year yield is now less than 5 basis points, giving rise to a sharp downturn in equities,” said Bhardwaj.

Bhardwaj said that almost every contraction in the United States over the last 100 years has been accompanied by rising dollars, rising interest rates and rising crude oil prices.

“Even this time, the scenario is the same. If we look at the technology chart, the Nifty50 has released a break from the bearish flag pattern on a daily time frame and has come close to critical support of 15,670 points. If the index breaks this point, it would lead to continued lower-and “A low-weekly weekly timeframe indicates a bearish bias in the medium term. We expect it to fall below 15,000 points if support is cut,” Bhardwaj said.

From the lowest price of 15,684, the index recovered to a loss of 15,740.95 on Monday afternoon, a decrease of 460.85 points or 2.84 percent. The 15,000 level is still 4.8 percent from 15,754.55 on Monday.

FYERS’s Abhishek Chinchalkar said the Nifty50 had fallen back to the 15,670-15,750 support area.

“This is an important support area for the index, as it has been stable for the past three months. A break and sustainability below this area would open the door for an extension of the reduction towards 15,000 points. On the other hand, 16,000 will now be immediate resistance for Nifty50.” he said.

Shrikant Chouhan of Kotak Securities said that the Nifty50, which would fall below 15,700, would be a major disadvantage for the market.

“In such a situation, Nifty50 would fall to 15,500 / 15,400 in the short term. It would also remain under continued selling pressure due to termination of long-term support levels,” he said.

Pritesh Mehta, chief analyst for stock equities at YES Securities, said the existence of a bearish anchor column, high-stakes and negative follow-up since April 2022 had led to a sharp drop in Nifty50.

“Barish turtleneck on the P&F (points-and-picture) chart indicates further weakness in the near future with a vertical target seen around 15,350. Our custom Top 10 Nifty index has turned from the top, trading below 200-DMA. We expect “because it will be below the lowest in May 2022, which indicates a weakness in the index. Even the installation between markets has been confused,” said Mehta.

(Disclaimer: Advice, suggestions, opinions and opinions given by experts are their own. This does not represent the views of the Economic Times)

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