“We like defence and renewables but they have had a great run. Any correction in markets will bring some of these stock prices to more palatable levels in terms of dipping our toes again. So, there is nothing really I want to be jumping into right now because markets are still looking overbought despite the recent correction.”
Nifty showed the first sign of profit booking when prices slipped below 19,800 level, with a bearish candle on the daily chart. The index has completed the Bearish Crab harmonic pattern at 18,887.60 level.
Analysts said certain technical indicators continue to remain in the overbought territory and the broader market sentiment has not seen any recovery, with only two stocks falling for every one that rose. Some caution is warranted, they said.