If Nifty breaks 9,700 then it will fall to 9,200 points, Atul Suri said. (Image: Wikimedia Commons)
Sensex and Nifty opened slightly higher on Tuesday but swung into losses in the late morning trade. BSE Sensex lost as much as 171 points to hit a day’s low of 31,455.65 points and NSE Nifty 50 shed 60 points to mark a day’s low of 9,813 points. The key equity indices fell into negative territory following escalating worries over North Korea. North Korea’s foreign minister said on Monday that a weekend tweet by President Donald Trump counted as a declaration of war on North Korea and that Pyongyang reserved the right to take countermeasures, including shooting down US bombers even if they are not in its airspace, Reuters reported.
As the pessimism rises amid the market participants over the movement of equity markets in near time, Atul Suri, Chief Investment Officer at Marathon Trends PMS, said the matter will be of concern if Nifty breaches 9,000-point level. Considering 9,700 as the support for Nifty, if it breaks 9,700 then it will fall to 9,200 points, Atul Suri said in an interview with ET Now. “I believe Indian markets are in an intermediate correction and every correction throws up a new sector to invest in,” Atul Suri added.
The US markets have run-up and had met target and he doesn’t expect it to be the driver of the global bull market, Atul Suri said. “I believe India will be a part of the big global bull market and it is important to see what the bigger trend is than to focus on correction,” he added.
Earlier on Friday last week, Nilesh Shah, MD & CEO Envision Capital told in an interview to ET Now that Indian markets may see a 5-10% correction in the coming months. Both liquidity and earnings will be needed to drive markets next year and liquidity will be hugely supportive of the current bull market, Nilesh Shah said. There is some pressure seen on the banking space which in turn put pressure on the key indices, Nilesh Shah added.
Indian stock markets plunged heavily on Friday on a possibility that North Korea may conduct another hydrogen bomb test, this time in the Pacific Ocean. The benchmark Sensex shed 484 points to mark the day’s low of 31,886.09 points which is its biggest fall since 15 November 2016 — demonetisation period. The broader Nifty 50 index also fell, lost as much as 169 points to fell below 10,000 mark to 9,952.8 points.
