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Stock Market: Liquidity gush inflating all asset classes: Atul Suri

money making ideas: Atul Suri on niche themes that will outperform for next 3-5 years

money making ideas: Atul Suri on niche themes that will outperform for next 3-5 years
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Nifty: Worry only if Nifty falls below pre-Budget level of 13,600: Atul Suri

As far as I am concerned, 14,500 is the level where a lot of retail will get nervous. If we go below 13,600, I would get back to the drawing board because this is the pre-budget low and the Budget has been a bit of a game changer for the underlying economy in India, says Marathon Trends PMS. Have you been monitoring what is happening on the bond yields on the global front and with respect to flows? It is definitely an area of concern but what is impressing me is how well behaved the markets are. We have doubled in a year. The Nifty was around 7,500 about a year ago and we are at 15,000 now. There has been a 100% jump in the index and it is but natural that markets will pause and correct. We have two options. One is that we can have a correction that is down or we can go into correction sideways. So far, the market has been exhibiting a sideways kind of correction. We are stuck to this 14,500-15,400 range, a 1,000 point band where we are somewhere at the midpoint.

what to buy: Is it time to buy Rip Van Winkle stocks? Atul Suri answers

There has been buzz around privatisation on the PSB front. Do you see this interest continuing? The beaten down stocks or themes is the most interesting place and the public sector undertakings form a part of that. We are 2.5 months into 2021. The Nifty is up around 7.5%, the PSU Bank Index is up 30%. Metals are up 18% and the PSU basket or index itself is up 18%. Globally, the beaten down spaces or sectors that have been the worst hit in the Covid fall are actually the biggest gainers. The PSUs form a subset of that basket. It is not just in India. In the two and a half months, Nifty is up 7.5% and the small cap index is up 20%. The midcap index is up 16%. So, the outperformance happening in the beaten down spaces. Thematically, beaten down spaces have been the biggest gainers in the last few months.

Reliance: Atul Suri on why further correction in market can t be ruled out

Just a little puzzled with what is happening with the markets the last five trading sessions? Today also it has flattered to deceive and all the morning gains are sold into! One must look at it in perspective. The Nifty was around 11,000 in September and we reached 14,700. So we had almost a 36% return just on the index in a matter of a few months. Obviously this kind of pace is not sustainable and whenever something like this happens, corrections are definitely due and it is actually good for the market. We have corrected about 6% to 7% from the top so after a 36% up move over the last four to five months, 7% correction is not a big deal.

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