F&O Talk: Market lacks strength, 25,350 critical resistance for Nifty, says Sahaj Agrawal of Kotak Securities
World shares held near three-week lows on Friday, and crude oil languished near this year's lows, as caution prevailed ahead of the crucial U.S. jobs data that could decide the size and speed of coming rate cuts in the world's largest economy.
Analyst Sahaj Agrawal, Senior Vice President: Head of Derivatives Research at Kotak Securities interacted with ET Markets regarding the outlook on Nifty and Bank Nifty the ongoing series. Following are the edited excerpts from his chat:
Nifty still seems well placed facing some resistance at its all time high. Do you suggest any caution here or the “buying the dips” stance will be beneficial?
I am of the opinion that markets are in a consolidative/corrective phase. Expect lack of upside momentum till a new positive setup does not mature. Having said this, specific sectors and stocks are available at attractive valuations with definable risk reward propositions – would use the buy on dips strategy in this value space and not in the momentum basket.
September, as it is said, has not been a good month for markets globally. Do you foresee any events that may make this true for our market again? Or do you think our market may be ready to break this record just like its previous record of closing on new highs for 13 consecutive days?
As we speak we do not see a strong momentum trigger in the markets based on data. This is somewhat in line with the nervousness on account of the upcoming FED event and the overall setup of the market being consolidative/corrective since
