(Riya Singh, Intern Journalist): After having nosedived 3% during the previous session, domestic benchmark indices on Friday were looking stronger. The NSE Nifty 50 reclaimed 11,000-mark, with index heavyweights supporting the move upwards. However, after the intense sell-off in global equity markets, is it safe enough to enter the stock markets again? Well, analysts still remain skeptical for the near term with technical analysts placing the immediate support for Nifty in the range of 10,800-10,750. Investors are being advised to stay cautious. Equity markets have undergone a correction after having jumped over 50% from March lows.
Equity markets have seen foreign institutional investors (FII) pull away Rs 8,408 crore from domestic stocks so far this week. In the September series, FIIs remained net sellers in the cash market segment and cumulatively sold equities worth Rs 9,525 crore.
Despite the current correction, analysts believe that stock markets are still in a bull phase. “We are in no way in a bear market,” said S Ranganathan, Head of Research at LKP Securities. He further added that the crucial October-December quarter is now just around the corner and some form of government stimulus ahead of it would bring the bulls back to life. “In the last 5 months, only RIL, TCS, Infosys, and HDFC Bank led the rally on the index. Between the four of them, they have had this rally on the index. Only for a brief few sessions, broader markets participated.” he added. Sensex recovered nearly 800 points during the Friday session to end above the 37,000 marks.
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