Worst over for Indian market

Worst over for Indian market

The worst seems to be over the Indian market and Nifty could find a strong support around 8000 levels is the word coming in from Chris Roberts, Asianomics. A close above 8505 on a daily basis would confirm that the bullish trend is resuming but a close below 7961 on a daily basis would be a worry, he says in an interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy. With China on an interest rate cutting spree, the focus has been on that market from March to April, says Roberts. The People's Bank of China (PBOC) reduced both the benchmark lending and deposit rate by 25 basis points to 5.1 percent and 2.25 percent, respectively. Moreover, the MSCI India has fallen 28 percent versus MSCI China since March to April. However, now since China has already seen a strong move, people would wait for consolidation to add further exposure there and would look at India that has now come back to a level which is a good support, he adds. Most of the uptrending stocks in India haven’t broken important supports, which is very encouraging and so the house has been adding exposure to India into names like ICICI Bank , Dr Reddy's Laboratories and HCL Technologies , Zee Entertainment etc. From the auto space, the house is upbeat on Tata Motors and Bajaj Auto , where the risk reward has improved but is not bullish on Hero MotoCorp . Talking about crude he says Brent is unlikely to break past USD 70 per barrel market and would likely be rangebound. On the currency front he says, since became incredible popular and overbought, they have moved out of dollar are long euro and see further correction for the dollar. Euro could see an upside to 1.14-1.15, he adds. Rupee according to him is in a gentle depreciation which is not likely to harm equity investors and could see a sideways movement.

Happy Investing

Source : Moneycontrol.com