Don’t be a blind bull in this market; 2 FMCG stocks to buy now: Aditya Arora
Aditya Arora, Adlytick, says the recovery in the Nifty Mid Cap space which is also in derivatives, the recovery is just about 50% of the fall. So, the recovery is not very strong and it is not broad-based because a lot of pockets are still down about 10% to 20%. One should just treat this as a retracement of the fall and should not be a blind bull at this point.
What is your take on the benchmark indices and the levels that one should watch out for?
Aditya Arora: The markets have recovered pretty smartly from those levels, but the recovery is pretty muted. If you look at Nifty Mid Cap space which is also in derivatives, the recovery is just about 50% of the fall. So, the recovery is not very strong and it is not broad-based because a lot of pockets are still down about 10% to 20%. One should just treat this as a retracement of the fall and should not be a blind bull at this point because we are not seeing fresh breakouts in many pockets.
I think we are just recovering from the losses and one should be very stock-specific in this kind of market because some pockets will outperform and most of the stocks are actually in an overvalued zone and those stocks could experience time correction and price correction.
The Auto sector has been in focus on the negative side. If you see the sector is down around 1 odd percent, obviously there are fundamental reasons for the same. On the technical side, do you expect the weakness in the auto sector to continue for some time or is this just some kind of a medium-term profit
