Stock-specific action to dominate market moves: Dharmesh Shah

«It is the right time to stick to the domestic side, where again the sectors like banking, again financially, if you look even in this current corrective phase banking as a sector clearly is showing the relative outperformance even in this current corrective phase,» says Dharmesh Shah, ICICI Direct.


What should one expect because I am sure the charts must be going all over the place with the news flow being so volatile?
Dharmesh Shah: Yes, definitely, the things are not in line with expectations. But we believe the market should form more of a higher base formation in this current corrective phase.

If you look at the market from 21,900 to 23,800, we are almost 2,000 points without any major corrections. So, always market requires some of the other reason to fall. Previously it was earnings, then it was FII off flows. This time it looks like the Trump tariff war that is something putting the pressure on the Indian market. We believe market should see more of a higher base formation in this range of 22,500 to 22,800, it remains to be the very strong support for the Nifty and we expect that to hold in this current corrective phase and maybe when next week things should start getting settled then we should see a pullback happening towards 23,500 to 23,800 which was the previous high. So, more for consolidation. Let us not forget we are entering into the result season. So yes, we may see a more of a stock specific action going forward for the market. So, more for consolidation is expected in this range of 22,500 to