Stock market strategy in Israel vs Iran war Time: Where to Invest Oil or Gold rises
Source: Business Standard
Every aged bull-run needs a healthy correction and this war-triggered correction has only escalated that, say analysts | Photo: Shutterstock
Stock market today, Stock market crash news: The ongoing correction in the Indian stock market may be nearing its bottom, analysts said on Thursday, as they expect the Iran-Israel war to turn into a “localised” affair over the medium-term.
At best, they expect the benchmarks — BSE Sensex and Nifty50 — to slide another 2-3 per cent here on and suggest investors use the dips to buy into quality large-caps and select mid, smallcap stocks.
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At close, however, the BSE Sensex stood at 82,497, down 1,769 points or 2 per cent. The Nifty50, on the other hand, broke the 25,300-mark to close at 25,250, down 547 points or 2.12 per cent, making investors poorer by Rs 9.6 trillion.
The BSE benchmark has tumbled 3,481 points from its record high level of 85,978 level, touched on September 27, 2024.
The Nifty50, on its part, has shed 1,027.5 points from its lifetime high of 26,277, touched on the same day.
In the broader markets, the Nifty MidCap100 index has fallen 1,901 points and the Nifty SmallCap100 index has crashed 688 points from their respective 52-week highs.
“Every aged bull-run needs a healthy correction and this war-triggered correction has only escalated that. As the markets are expected to remain jittery in the near-term, we advise investors to use this opportunity to enter quality large-caps from a long-term perspective,” said Gaurav Dua, senior vice-president, head-capital markets strategy, Sharekhan.
He advises investors to bet on pharmaceutical and fast moving consumer goods (FMCG) companies offering valuation comfort.
Oil on the boil
That apart, Reuters reported that Organization of the Petroleum Exporting Countries (Opec) and its allied members (Opec+) left oil output policy unchanged on Wednesday, including a plan to start raising output by 180,000 barrels per day (bpd) December onwards.
“Consumption and infrastructure (cement)-related companies may feel the heat as the recent uptick in oil prices could lead to an uptick in their raw material costs. Investors, however, may use this dip to buy quality names in the space,” said Vinod Nair, head of research at Geojit Financial Services, who also prefers information technology (IT) and Pharma as a sector for the long-term.
G Chokkalingam of Equinomics Research said over-valued and ‘perception driven’ small and mid-cap stocks may test the waters for some more time.
“With the Nifty breaching multiple supports—such as the 20-day exponential moving average (DEMA) around the 25,580 level and trendline support near 25,350—the market could face further downside. We are now looking at the 25,000-25,150 zone as the next support, while any rebound is likely to be capped in the 25,450-25,600 range. Traders should adjust their positions accordingly, using any recovery to reduce longs and initiate shorts in weaker pockets,” said Ajit Mishra, senior vice president for research, Religare Broking.
First Published: Oct 03 2024 | 1:33 PM IST
