Expect second leg of rally in mid and smallcaps in April onwards: Rahul Sharma
Rahul Sharma, Director & Head — Technical & Derivatives Research, JM Financial Services, says “the bull market is very much on. Individual stocks may witness correction because there was definitely a lot of euphoria and over-optimism, especially in smallcaps. So, there we are seeing pullbacks happening. But once the largecaps are done with, the second leg of the rally could very well spill over to the mid and smallcaps which is where we might see another rally happening, possibly in April and ahead.”
I must say that you have caught the market moves, the swings of the market last few months very nicely and we are at 22,500 now. Is the shakeout which the broader market saw for the last 7-10 days, is over now or would the texture of the market remain tilted toward largecaps, at least for the full series?
Rahul Sharma: Shakeouts are good and that is exactly what we have seen happening in this consolidation. The texture of the market is still buy-on-dips and it is still positive. On one hand, the Nifty has broken out from this consolidation that we had from the last eight to nine weeks and the Nifty now seems to be heading towards higher highs, possibly 23,000 is very much on the cards.
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So far the pain point for the market had been Bank Nifty; but that has also come
