The market fell like hell but the wise ones would have done well to pick some stocks. No point in discussing what went wrong on Wednesday. No earth shaking event happened. The only explanation could be profit booking by FIIs after a three-month rally. Of course sentiment associated with a large stock which gave way towards noon may have caught many on the wrong foot. Though we can’t really escape weak global cues for long, the Indian market could attempt a recovery after Wednesday’s sudden sell-off.
There have been some concerns over the lofty stock valuations without any commensurate improvement in fundamentals. However, TODAY a new day. The bulls are keen to get back to winning ways, especially considering India's relatively better positioning vis-à-vis other economies. A flat to positive opening is on the cards. Overall, the market will remain choppy with alternative bouts of rise and fall depending on how global cues play out. The recovery in economic growth and corporate profits will take time to catch up with market performance. At every fall, you could feel better if you pick up something.
Looking at the panic selling in the last hour of the trading session and crucial technical levels being breached, Indian markets would further slide atleast in the early trades. However, one cannot rule out a smart bounce back later in the day.
