The equity market in the last two weeks experienced movement between the positives and negatives. The positives include better GST collections and an upsurge in auto sales. On the other hand, the downfall caused due to rise in the spread of the virus.
As per the records, on April 6 Sensex went down from its high to 6 percent.
According to experts, the volatility remains in the market for the short term. It is advisable for investors to identify quality and healthy stocks.
However, some experts incline towards suggesting to wait for some time for a price correction. The market went upwards after the adverse impact of the pandemic last year. The market picked up pace in November 2020 and expect to rise further in a couple of months.
Though there might be a chance of an uncertain situation due to a sudden rise in the spread. The fourth quarter pertains to the chance of growth and better performance. But the upscale of the virus infection may affect the corporate earnings for FY22.
Additionally, the suggestion includes that investors currently should not invest with an expectation of a rise in the stocks. Investors should remain alert and sell specific stocks if required.
Experts incline towards recommending avoiding new buy and waiting for the correction till 14,450. Also, to wait until the index crosses the resistance and support level above 14,900.
In FY22 the potential gain in the stocks includes PSU, automobiles, and FMCG. The well-performing sectors in the current times include cement and IT.
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