Consolidation in IT stocks likely; HFCs more likely to gain from home loan subsidy move: Kunj Bansal
Kunj Bansal of Investment-illiteracy.com, says “I do not think for the IT sector as a whole, there is going to be any surprise neither on the positive side nor on the negative side. So with this recent participation having come in and with the market having moved up sharply and trying to move in a consolidation kind of movement, we should see the same happening to the IT sector as well.”
What do you make of the wobbly moves that we have seen on the markets of late? Do you think it is a bit of a shakeout which was necessary or is it a bit of reversal of sorts?
One can never take a call on the short-term movement of the market. But yes, after the sharp rally that we saw in the first fortnight of September and almost 10-12 trading sessions, the market was moving one way up. There had to be some correction if we talk whether in terms of technical terms, whether in terms of short-term correction or whichever way. That is what we have seen. If we look at the numbers on the peak in Nifty, we reached 20,200 almost. And right now we are at 19,700. So that is a 500 points correction in percentage terms. It's hardly 2.5% correction.
Unlock Leadership Excellence with a Range of CXO Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisit
And in terms of the number of days, the correction has come in four or five trading days. Today the market is already showing that it is trying to move in a trend or in a zone. That is where we are. More importantly, the triggers going forward of the results season is something that will be worth watching.
What about IT? The stocks were sideways for the
