The short-term market outlook hazy; how should retail investors play in this market?
Click here!) Recent trends of the market show gains in the market followed by a fresh wave of selloff. Experts think this may change in October. "The ‘sell on rally’ market construct is likely to change in October.
October is usually a favourable month both for the US and Indian markets. There are indications that this historical trend may play out this October too," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "The ‘triple whammy’ of up-trending dollar, US bond yields and Brent crude is showing signs of easing.
If this trend continues it will facilitate a recovery in markets. Stability in the US market yesterday also can be a supportive factor," said Vijayakumar. But the concerns surrounding macroeconomy persist and some experts advise retail investors should be cautious.
Also Read: Stock market rebounds: Is it a relief rally or fresh bull trend — explained with 5 reasons Manish Chowdhury, Head of Research at StoxBox underscored even though the medium-to-long-term bullish trend of the market remains intact on the back of India’s structural story and strong domestic flows, retail investors should be cautious for the near term. "The markets at the current juncture look indecisive in the short-term impacted by the triple whammy of rising crude oil prices, depreciating rupee and the events unfolding in the US related to the government shutdown. We would advise market participants to be on the sidelines and wait for decisive moves on either side for fresh entry," said Chowdhury.
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