This is a very challenging time for global and local equities, Shah told CNBC-TV18, adding that the current market may not be a buying opportunity.
Sounding cautious on bearish run in equities, Gautam Shah of JM Financial advises investors to remain on sidelines for now.
This is a very challenging time for global and local equities, he told CNBC-TV18 adding that the current market may not be a buying opportunity.
For the Nifty, he sees 10,500 as a support level, and a fall below that could drag the index to 10,400 and 10,200 levels.
Meanwhile, on the upside, he keeps 10,850 as a crucial level and until the market surges beyond 10,850.
Speaking on the overall trend in domestic and global market, Shah said that a recovery is not likely from this point. “Many global markets are in a confirmed bear market and India cannot escape the global trend as well.”
Further, he explained that the US market has been in an uptrend for the past seven years, but the tide could soon be changing. If 24,200 on Dow gets violated, the index could fall to 22,000.
On sectors, he remains cautious on the financials space despite the recent good performance by the sector. “The scenario (political) could change over next few days and there is no place to hide in current scenario’” he added.
In case of information technology (IT) stocks, he sees the outperformance to be a temporary one and has already hit the top levels. Nifty IT could be looking at levels of 13,000-13,200.
