F&O Talk: Healthy correction likely in Nifty, setting up for the next move up, says Sudeep Shah of SBI Securities
Nifty opened with a gap down on Friday after reaching a new all-time high in the previous session and experienced weak price action throughout the day, closing down by 293 points.
Meanwhile, the Bank Nifty has been underperforming and may continue to do so.
On Friday, the Nifty closed lower by 1.2% at 24,717.70, while the Bank Nifty ended 0.41% or 214 points lower at 51,350.15.
Analyst Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research at SBI Securities, discussed the outlook for the Nifty and Bank Nifty, as well as an index strategy for the week, with ET Markets. Here are the edited excerpts from his conversation:
The Nifty and Sensex made new highs again on Thursday. However, immediately after a day, the index opened a gap down. Where do you think the index is headed? Are there any higher levels that you see coming in the near term or some consolidation might be expected?
During the last week, the benchmark index Nifty reached a new milestone by surpassing the 25,000 mark for the first time, marking a historic achievement in the market. However, on Thursday, the US market experienced a sharp selloff due to disappointing economic data, which overshadowed optimism about a potential interest rate cut by the Federal Reserve. This led to profit booking in our markets as well on Friday.
As a result, the benchmark index Nifty tumbled by over 360 points, ending the week at 24,717 level with a loss of 0.47%, breaking an eight-week winning streak. Along with this decline, Nifty retraced
