Stockology: Market sentiment expected to lean towards caution
The presence of pockets of volatility flummox confuse retail traders, potentially leading to confusion if trades are made without clarity.
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The presence of pockets of volatility flummox confuse retail traders, potentially leading to confusion if trades are made without clarity.
The coming week is very short, and most likely lower opening will attract specific buying from the funds, who would prefer to maintain the NAV.
The PSU sector is still undervalued and might continue to perform better in the coming few months. The new high on the markets is not a surprise as risk reward is favouring the bullish traders.
Selective buying on dips can be continued, and stocks in extended momentum can be periodically trimmed. On the other hand, volatility will increase during the week, and the possibility of breaking the level of 21,800 is very high.
The overall week ahead will give a negative closing compared to the opening of Monday and the close of Friday, February 16th.