Most of the sectors that are in the bullish zone are attracting profit-taking, while the other underperforming sectors are getting more short-selling. There is a cautious approach from the market participants, and they are booking profit, according to Palviya.
“It is best to remain on the sidelines (rather) than chasing stocks that have already done well,” Chakri Lokapriya, managing partner at RedStrawBerry LLP, said.
Lokapriya pointed out that there are pockets within the industrial, railway, defence and even infrastructure and banking sectors where stocks are looking reasonable. “But since there is already money made, I think on days like this, it is easier to take money off the table.”
Palviya underscored that if the Nifty Bank, which closed below the 48,000 mark, continues to be below these levels, then it would be challenging in the near term.
Explaining the fall in the banking sector, Lokapriya said that with the sentiments being low, any negative news is taken at a higher magnitude. This is why, he said, the regulatory action by the Reserve Bank of India is being taken so harshly despite the action helping banks improve their balance sheets.
