Market has already factored in the roll out of Goods and Services Tax from April 1, 2017 from a top-down basis, Nilesh Shah, MD of Kotak AMC said.
Chances of a bounceback on Friday look bright, as the index closed around its crucial support level. But that should not tempt traders to create fresh longs.
The Nifty50 managed to hold above the 8,500 level even after the sharp selloff in banking stocks. The index closed 29 points or 0.34 per cent lower at 8,484.
Put writing was seen at strike prices 8,400 (3.67 lakh contracts added), 8,300 (2.3 lakh contracts added), 8,200 (2.2 lakh contracts added), and 8,100 (1.6 lakh contracts added).
The aggregate top line of the 684 companies that have announced their September quarter earnings so far grew marginally by 4.5% on a year-on-year basis.
The tenbaggers portfolio of Ambit Capital has generated cumulative alpha of 59 per cent compared with the S&P BSE500 index over the past five years.
The Nifty50 slipped below its crucial support level of 8,500 for the first time since July 11 weighed down by losses in IT, oil & gas, banks and capital goods stocks.
US stocks extended losses and Treasury yields fell after the Fed statement. The dollar briefly pared losses before falling further against a basket of currencies.
Traders are advised not to create any long positions on declines and square off existing positions instead. Now, the 8,500 level holds the key for the index.
In India, to generate healthy returns, investors need to focus disproportionately on the quality of the franchise and worry less about valuations.
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