Broader markets also took a hit, with the Nifty Midcap 100 index ending 3.3 percent lower and its smallcap counterpart falling 2.9 percent.
High crude prices and increase in input costs that has been entirely passed on to the consumer through the price increases,” he said.
My sense is the support level of Rs 770 will eventually get broken in the coming times and a stop loss can correct at levels of Rs 720-700, where good support lies.
Pramod Gubbi, Co-Founder of Marcellus Investment Managers, believes there are a handful of staple and discretionary companies that are set to gain market share from peers irrespective of the external environment.
To cater to a large number of customers, you need significant strength on the brand front to be making your products and services appealing to those set of consumers.
But how much traffic do we have in South Africa? How much of global travel gets impacted by that? We don’t have any change in our statistics in that sense, which is so adverse.
And all of that will probably mean that institutional money, the smart money, will start to buy into lower levels, because this could also be temporary.
The price of Bitcoin — the world’s largest cryptocurrency — slumped five percent to $55,000 amid renewed concerns over a new COVID variant.
“Nervousness on the new variant of Corona virus and expectations of US increasing the pace of tapering have led to recent market weakness.
Pharmaceutical and healthcare shares have been seeing a lot of buying after a correction that lasted many weeks.
“Steel is a contra buy at this point of time but if you see charts of some largecap steel and commodity stocks, they are very close to their long-term supports.
Global markets followed news of a new COVID variant, which triggered fears of stricter lockdown restrictions once again to curb the spread of the pandemic.
Alok Jain, Founder of WeekendInvesting.com, believes there is a lot of profit taking happening in the market.
So without trying to double guess where the market may turn back from, as long as you are following your plan, you are following your strategy and your risk management is in place, I think traders should be doing very well,” he said.
Jain also said that in the last one month, the market has been off by about nine percent, and several stocks have come off dramatically.