Currently market is @ very vital stage, I am saying this because we see buying and selling at every level with very high volume. I personally believe tone of market is bit positive but how long it will continue is a really question.
If in Result season companies provide above 20% growth on NP then I think it will be very much positive trigger for overall market, but for that most of the companies has to give above average growth in NP, which I think is bit tough. Some sector will out performed in NP growth but overall Nifty or Sensex growth seems to be around 16-18% anything above it will give new upside to market.
For Medium term to long term perceptive, Mid Cap & Small Cap should give over 16% growths in NP, otherwise going forward market can slide back to 5200 level and we can see huge sell off in Mid Cap and Small Cap along with some selling in Large Cap too.
It seems Metal, Auto, FMCG & Bank will give better NP & Revenue growth. But going forward question remain same will this growth will be there in coming 2 or 4 qtr which generally market discount in advance. I am not sure about how much growth will carry on in these sectors, but one thing is sure that this sector will do better than other in coming days.
Technically Nifty Midpoint 5750 is very imp level to watch on 5200 – 6300 Range. So as long as this level holds I don’t see any problem in carrying your long. On higher Side 6300 will Act @ Resistance.
Currently NIFTY EPS is 263 and its trading @ 22 PE if will take 4.5% Rise on Qtr that comes to 275, & PE of 22 result into 6050 level. I think anything above that level will face sell off. Unless and until Qty on Qty growth is very high and EPS stretch to 280-285 level, otherwise 6050 level will be equilibrium level
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