MARKET CORRECTION: HOW LONG?
Whenever the stock markets fall deeply, every investor with sheer disappointment questions in mind how long this correction would be and would the markets fall further. And every one also hesitates whether to put in money at this juncture or wait further. The opinions of experts on the markets are given below.
Experts say that there will be a correction of 5% from this levels of the market. They opine that even then the share prices at current level are not appropriate according to their valuations. Probably after the correction upto 5% below, the markets would consolidate and the Nifty would be at the range of 4500 and 4800. The experts also feel that there may not be correction below the Nifty levels of 4500 and if the Nifty bounces back the major resistance zone is at 5080 and 5100.
WHAT ARE THE FACTORS?
Inflation and interest rates are the factors which may affect on the movement of the markets. The Reserve Bank of India is gradually moving out from the liberalised monetary policy, experts say. The confirmation on the rate of growth in the economy is still awaited and there is no clarity in the macro and international economies. These are vital statistics which may impact on the markets and by January-February, we see the impact.
IS THERE BIG CORRECTION SOON?
Experts say that there is little scope for that. Investors, internationally are looking for investment opportunities. In fact, if the Nifty comes below 4500, the prices of the shares would be very much attractive at that level and a lot of buying emerges there. So we need not worry that much regarding the fall, as the buying emerges immediately. Nifty may not fall below 4000 upto the end of this calendar year and 4500 level acts as the strong support, experts say.
IS THERE OPPORTUINITIES FOR WEALTH CREATION?
To tell frankly, the present period is a good opportunity to create wealth. The situation is not that much gloomy and it lasts for some more time as the companies are reporting positive reports and it is a very happy note. But uniformly all the sectors and companies will not see this kind of growth and the investors should be careful choosing their stocks. Overall, the results are in green and this may be continued for the 3rd and 4th quarter also.
As said earliers, investors should do their own homework, in selecting a good stock. With the advantage of trend turning positive, a lot of companies made themselves capitalized the opportunity of getting the QIP money etc., Anything goes against the hopes of investors as well as the companies, then the situation becomes worse but hopefully that is not visible, the experts say.
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