Where would the market head now?

ShareSansar, December 22:

Stock brokers are among those who keep a very close tab on the market as they are key stakeholders. ShareSansar talked to some of the leading stock brokers of the country regarding their take on the unprecedented surge in the market last week, especially on Thursday, and how would the market fair this week. This is what they have to say:

Broker# 6, Anuj Agrawal:

The rally in the market for the last three days of last week was such that it should have gone on correction, and it is a good thing that it did so. Another good thing about Thursday’s trading is its turnover. The turnover is such that it will keep on fuelling the market to new height – though we may not see consecutive circuit breakers like the ones we saw last week.

Hence the market cannot but continue to be bullish this week. The million dollar question is: how long could this growth be sustained?  It will also depend on whether most of those who booked their profit over the recent days, especially on Thursday, will return to take a fresh position in the market or will they look for some other areas to invest their money such as the realty sector.

Broker#17, Nitesh Sanghai:

When we talk about the trend of the stock market, volume is the best factor. It will ensure that the market will not crash or go on a downward spiral any time soon.  Just think about the level of investor confidence on Thursday!
I don’t see any factor that could drag the market down this week or the near future.


Broker#28, Nanda Kishor Mundara:

The market sentiment is extremely upbeat, and the market did actually attempted correction on Thursday in reaction to the trading over the last three days of the last week. However, I am not very happy with the way the investors are approach the trading. Everywhere else in the world, an investor starts to take a buying position when the price of shares is low. But we on a buying spree whenever the market is very bullish. This is not an encouraging trend going by our own track record.

Nevertheless, the market will continue to rally this week – sheer volume of the trading is enough to sustain the rally for the time being.  

Broker# 35, Bharat Ranabhat:

After surging for days after day since the election, the market finally tried to go on correction on Thursday.  The fact that the market again rose after falling sharply is a good thing in that a lot of investors wanted to book their profit, which in turn gave an opportunity to most of whom who wanted to buy the scrip at a reasonable rate.

If the volume of turnover is anything to go by, the market will continue to rise this week and many more weeks to come, though gradually and steadily. Don’t forget that most of those who wanted to book their profit as well as those who wanted to buy the shares have already done so Thursday.

Broker# 39 Jeevan Prasai:

Though the sheer volume of trade clearly shows that the market will not come down anything soon, but the fact that the benchmark index surged by almost a hundred points in just three days in worrisome. I am also not very sure if most of the investors were wisely trying to book their profit on Thursday. There were also some rumors that the central bank was about to issue a circular to rein in on the profit of the commercial banks. Many investors had pressed the panic button due to this.

Anyway, the volume itself is enough to sustain the market for this week and more before it will have to go on a correction.

Broker #56, Sandeep Jalan:

We don’t see anything unnatural about the rally in the market. What transpired on Thursday was the culmination of the sustained rally over the previous week. The investors had to book their profit and they did so. And a lot of those who were desperately looking for a good deal to buy the scrip, too, got an opportunity to do so.

Now the market should not surge meteorically. And we believe it will rise slowly and steadily this week.  What we should remember is that the share market remains the best investment platform for both institutional as well as individual investors for the time being.