A sucker market rally is ahead ? caution required
Published On: Wednesday, March 11, 2020 | By: Team KnowMyStock
For seasoned investors, a battered stock market is a hunting ground to scout for the next winning bet. A sharp rebound might be in the offing with heads of states and central bankers scampering to talk up the market after Monday’s carnage. But the experienced traders are more likely to stay clear of such a ‘sucker rally’(A sucker rally is a bounce in an overall market downtrend usually driven by investors’ enthusiasm to lap up falling stocks)
The market may struggle to keep any momentum going with the outlook for the coronavirus-ridden global economy looking hazy.
The bad news is that some of the long-time foreign investors in India are dumping local shares at the moment, said experts.
The severity of the sell-off in banks and consumer stocks gives little hope of a more long-drawn recovery immediately.Analysts said valuations in many of these stocks remain rich even after the fall in the prices, making them to further sell-offs in a risk-off environment.
"The long-term trend lines of Bank Nifty and FMCG index have broken.It will be crucial for the Nifty to stay above the psychologically crucial 10,000-mark to avert a long-term bear market.
Tags: sucker market
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