Zomato and Paytm emerge as strong picks, but market volatility looms: Rahul Sharma
«So, the best thing to do at this point in time is to look for put options on the Nifty or create a bear spread using these two levels and participate on the downside,» says Rahul Sharma, JM Financial Services.
Definitely, a gap up start for the Indian markets and good part is we are sustaining those levels but where do you see the markets headed? Are we in for a pre-budget rally maybe or the market can halt a bit before continuing the leg up?
Rahul Sharma: So, this seems like a dead cat bounce of sort because the volumes especially if you simply track the Nifty volumes they have not been increasing in the last three trading sessions, that goes to show that the stronger hands are not really buying in this bounce back.
So, we are waiting for the absolute capitulation to happen. Once that happens, that would be a strong case for a turnaround. So, as of now the view is sell on rise.
23,500, 23,300 these are the two resistance levels for the Nifty. As we speak, we are very close to the 23,300 mark. There is a very strong chance that Nifty slides down towards the 22,800 mark which is around 500 points on the downside.
So, the best thing to do at this point in time is to look for put options on the Nifty or create a bear spread using these two levels and participate on the downside.
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