The secret to this is to find areas of prospects. In recent times, banking stocks have traded higher and lifted the market to record highs, but the area is not entirely resolved of its problems, say experts. A day after suffering strong losses of about 1.5 percent, equity benchmarks the Sensex and the Nifty remained in the lower territory in the morning trade on November 26, an indication that investors wanted to take the money off the table as uncertainty around COVID-19 remains a stick out. The market has made several attempts to bounce back but to no avail. Volatility is predicted to occur on the last day of the November F&O sequence.
At 1010 hours, the Sensex was 88 points, or 0.20 percent, down 43.739 and the Nifty was 43 points, or 0.33 percent, down 12.815.75. While the far-sighted future remains positive, analysts predict prolonged profit-booking as the market is trading close to unprecedented levels. The general business environment remains positive provided the progress in the vaccine development and trump now being out of the picture with Joe Biden newly elected as the president of the United States. However, periodic profit-booking cannot be ignored provided the sharp rise in the near term. Investors should also watch for changes over fiscal announcements in the US. On the government side, the market will look for information on the monthly F&O expiry and the rollover details, in particular the FII position. The Nifty developed a bearish engulfing trend in the previous session. In the last few sessions, the development of bearish engulfing trends has not indicated a consistent weakness in the market and the index has bounced back from the bottom. In the short term, therefore, the follow-up to market activity is essential. Many businesspersons have considered not putting bets on the banking sector and they would bet on health care and health institutions instead which are expected to remain as long-term investment themes. Experts advise that one should be cautious and stock-specific in such markets. Since there is a long market crash ahead, corrections can be made to keep valuations safe, but these corrections should be invested in, they said. The September quarter earnings turned out to be stronger than expected. Now that the December quarter numbers would be on the chart, as they would paint a clearer picture of how much the coronavirus has crushed the banking sector.
