Neeraj Dewan, Market Expert, says though he is positive on the markets after the correction, he feels that the market may have made a double bottom and from these levels, it can be constructive. The result season threw up certain strong pockets, which may continue to do well. But in the near term, we need to watch the FII outflow.
Dewan further says that chemicals, and IT stocks can do well from these levels depending on the news flow from the US and can be considered Trump trade.
The final verdict is out and the markets clearly seem to be pleased overnight. We saw the rally play out for our own markets. What could be the long-term implications of this and more importantly, what is the trajectory? Do we stay in a range or hold out from these levels?
Neeraj Dewan: Yes, definitely. We saw the Trump rally yesterday. The markets were doing quite well. The last couple of days have been good for the markets. We hit that bottom and after that, we saw this good rally. But one thing which has been worrying our markets is the FII selling, which was there yesterday also and a huge amount that they sold yesterday.
So, though I am positive on the markets after the correction, I have a feeling that market may have made a double bottom and then from these levels, market can be constructive and we have seen the result season so there have been certain strong pockets which were there in the result season, which may do well and which may continue doing well.
But in the near term, we need to watch the FII outflow. Whether earlier