ET NowIn a chat with ET Now, Sandeep Wagle, Founder & CEO, Power My Wealth, shares his market outlook. Excerpts:
ET Now: What went wrong with the market today?
Sandeep Wagle: Until 7930, which is the prior swing low that happened four or five days back, is broken, I am still not willing to accept that we are in a bear market.
Again, we may have the markets bouncing back tomorrow. Not to say that I am bullish on anything. The charts are suggesting bearishness, but if 7930 is broken down on a closing basis, we can go down all the way to 7600, even 7580. Yet the bull market remains. Even if we go to 7200, we are still in a bull market.
As a trader, today’s fall has unnerved a lot of participants and as a follow-up to that, if we close below 7930 tomorrow or the day after, then the bigger fall commences and we will go down all the way to 7650. For me as a trader that would be more worrisome for people who are long.
If you can time the market and go short, you can catch the move very fast. In three days we will be at 7600-7650, provided 7930 is broken down. That is the level I would be watching closely over the next one day or two.
ET Now: The Nifty is only down by 100 points and I can see sweat on your brows. So what is the big deal about today’s sell off? Why are you pressing that alarm button?
Sandeep Wagle: As a trader, if you are carrying long positions specifically in F&O, you need to be on your toes all the time and I am warning those set of participants who belong to this category that do not buy if 7930 is broken.
As an investor, I would still say if there is a 200-point fall, one has to buy because you cannot time to that perfection that a 200-point fall or a correction can extend to another 200 points. We may eventually see 7500. If you have time on your side, you need not worry.
ET Now: Assuming that today charts have been shaken up, how should one trade tomorrow?
Sandeep Wagle: The follow-up selling will continue. I expect the Nifty to go down by at least 70-80 points. nearing a per cent or so, and in that scenario you will get many stocks trading two, three or four per cent down. So the first half of the day be a little on the bearish side.
Unless it opens with that kind of gap, it does not make sense selling. But if it opens near the close or there is a bounce back of 20, 30, 40 points, ihe right direction to be is on the downside and I would sell Hindustan Zinc – with a stop loss of 162, target of 147 -- as a trade for a day or two. The second call is a sell in Just Dial which is seeing weakness over the last couple of trading sessions. I would sell it with a stop loss of 1674, target of 1550.
ET Now: What went wrong with the market today?
Sandeep Wagle: Until 7930, which is the prior swing low that happened four or five days back, is broken, I am still not willing to accept that we are in a bear market.
Again, we may have the markets bouncing back tomorrow. Not to say that I am bullish on anything. The charts are suggesting bearishness, but if 7930 is broken down on a closing basis, we can go down all the way to 7600, even 7580. Yet the bull market remains. Even if we go to 7200, we are still in a bull market.
As a trader, today’s fall has unnerved a lot of participants and as a follow-up to that, if we close below 7930 tomorrow or the day after, then the bigger fall commences and we will go down all the way to 7650. For me as a trader that would be more worrisome for people who are long.
If you can time the market and go short, you can catch the move very fast. In three days we will be at 7600-7650, provided 7930 is broken down. That is the level I would be watching closely over the next one day or two.
ET Now: The Nifty is only down by 100 points and I can see sweat on your brows. So what is the big deal about today’s sell off? Why are you pressing that alarm button?
Sandeep Wagle: As a trader, if you are carrying long positions specifically in F&O, you need to be on your toes all the time and I am warning those set of participants who belong to this category that do not buy if 7930 is broken.
As an investor, I would still say if there is a 200-point fall, one has to buy because you cannot time to that perfection that a 200-point fall or a correction can extend to another 200 points. We may eventually see 7500. If you have time on your side, you need not worry.
ET Now: Assuming that today charts have been shaken up, how should one trade tomorrow?
Sandeep Wagle: The follow-up selling will continue. I expect the Nifty to go down by at least 70-80 points. nearing a per cent or so, and in that scenario you will get many stocks trading two, three or four per cent down. So the first half of the day be a little on the bearish side.
Unless it opens with that kind of gap, it does not make sense selling. But if it opens near the close or there is a bounce back of 20, 30, 40 points, ihe right direction to be is on the downside and I would sell Hindustan Zinc – with a stop loss of 162, target of 147 -- as a trade for a day or two. The second call is a sell in Just Dial which is seeing weakness over the last couple of trading sessions. I would sell it with a stop loss of 1674, target of 1550.
Get Unlimited Access to The Economic Times
