Around the levels of 7600-7700 levels do not wait for another 100-200 points but grab the opportunity and enter into the market, says Gautam Shah, Associate Director & Technical Analyst, JM Financial.
In an interview to CNBC-TV18 Shah says, one should follow what Warren Buffet says: be greedy when others are fearful. “This is apt in the current scenario where people are fearful and seem to be losing focus of the medium or long-term trend of the market,” he said.
According to him the screen is telling us that there is capitulation, so 7500 would prove to be a good support for the Nifty. “Market will find a durable support around 7450-7550 zone, and if we were to see recovery from these levels then we can get back to level of 8000 and then 8300,” he adds.
Therefore, around the levels of 7600-7700 levels do not wait for another 100-200 points but grab the opportunity and enter into the market.
He thinks private banks, autos and FMCG would be the sectors that would lead the Nifty to higher levels and would be his top picks.
With regards to Bank Nifty, he thinks 16500 is a critical level and if it breaks that then one could see 2-3 percent fall but broadly the levels should hold out.
Midcaps have been the silver line of 2015 and it is unlikely that largecaps will beat midcap and smallcap performance going forward too. Midcaps to date have lost only 10 percent from the top compared to the Nifty’s 17 percent fall.
More to come.