Markets have bottomed out? No, say experts

NEW DELHI: Though the markets have had a decent amount of correction in the recent past, but experts are not yet ready to confidently say the markets have bottomed out.
"We need to look forward to a couple of important data points, especially the IIP and the inflation numbers, and see how that trend is shaping up. Moreover, we still have the Q4 result season going on. So, I would think it is good for now, but I would not really be very confident that we have a significant bottom in place at this stage," Taher Badshah, Senior Vice President & Co- Head Equities, Motilal Oswal Asset Mgmt Co Ltd, told ET Now.

The market is trying to adjust to some new realities, including the spike in commodity prices, including metals as well as oil and. Besides, of course, the fact that the rupee has grown relatively weaker. Hence, It may be hard to firmly say that the bottom is in place, Badshah explained.

Ashwani Gujral, Fund Manager, Ashwanigujral.com, said that the next 50 points would be crucial for Nifty, which is approaching the previous week’s high, which was about 8350, before it fell over 200 points on Wednesday.

"On 8400 is the 20-day moving average, which is declining, and these next 50-70 points are important. Once we get past them, there will be more short covering. Once 8400 is crossed, then serious long positions will start, but overall, maybe after 300-point rally, you could see a 45-50 points downside before the market restarts its momentum. So the next 50 points should be crucial," he said. On Monday, the Nifty closed with a smart gain of 133.75 points at 8,325.25.