New Delhi, Aug 14 (SocialNews.XYZ) The market construct has turned a bit negative. The spike in the dollar index to 103 and the US 10-year bond yield rising to 4.18 are negative for capital flows to emerging markets. The FPI sell figure of Rs 3,073 crore last Friday is in tune with these negative trends, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Bank Nifty has been a pressure point for the markets during the last several trading days. The RBI decision to raise the CRR of banks to neutralise the excess liquidity created by the withdrawal of Rs 2000 notes has added to the negative sentiments in the banking sector, he said.
However, leading banking stocks would be good bargain buys on market corrections since the fundamentals of the sector remain strong and valuations are fair.
Investors should exercise caution for the near term and wait for the market to consolidate, he added.
Anand James, Chief Market Strategist at Geojit Financial Services on the Nifty outlook said buyers appear to be receding, expecting deeper falls, with supports identified at 19258, 19060 and 18900. Prospects of a revival in uptrend, rests on the ability of 19400 to attract bargain buying, having retraced 61.8 per cent of the rise that unfolded since 3rd August.
BSE Sensex is down 290 points at 65032 on Monday morning. JSW Steel is down more than 3 per cent while SBI, Tata Steel, Bajaj Finserv down more than 2 per cent.
Source: IANS
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