© Simply 3 Capital
© Simply 3 Capital
Markets saw a sharp bounce yesterday of 288 pts on Nifty. Nifty closed at 15638 up 1.88%.
Markets saw a sharp bounce yesterday of 288 pts on Nifty. Nifty closed at 15638 up 1.88%.
What we are witnessing on Nifty is a pullback rally and it does not indicate change in trend from down to up. A sustained move higher is still off the cards.
Nifty faces stiff resistance in the zone of 15900 and beyond it around 16200 levels. Breaking 16200 would only mean a stronger pull back towards 16600.
Beyond these technical reference points, the macros have to change meaningfully before we could see a sustained up move. Result season will start soon and investors would keenly watch it to understand the impact of high inflation on margin and demand both.
Current Nifty PE is close to 19.50. The Nifty PE at the start of April 2022 was 23.19. So a significant value drop has occurred, but with the impending result season, it is better off to witness the events from a distance and still not move aggressively into the thick of action.
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