In a conversation with CNBC-TV18, Nilesh Shah, the managing director of Kotak Mutual Fund said that stress tests are not the cause of the market correction and that this correction is an unwinding of the excesses
The ratio for all BSE stocks has fallen to a monthly average of 0.83 in March, the lowest since the same period a year ago. A declining ADR means more stocks are falling as against the gainers.
"The profit taking has been broad based amid softer global cues," said Pankaj Pandey, head of research at ICICI Securities. "Nifty is also struggling to cross the psychological levels of 22,000 due to lack of near-term triggers."
Rohit Srivastava of Strike Money Analytics & Indiacharts highlights the risk posed by the high positioning in the market. He expects a prolonged corrective phase and warns against being bullish on IT stocks, which still face headwinds. The Rs 50,000-crore positioning that we see is a risk to the market itself.
Rohit Srivastava identifies FMCG and private banks as the weakest sectors. Short-term bounce back seen in HDFC Bank and ICICI Bank. Nifty and Bank Nifty may have experienced a false breakout. Drop in volumes and critical support levels to watch. PSU stocks show high RSI and potential shorting opportunities in oil and power segments.