Equity markets ended down for third consecutive day - Mustafa Nadeem CEO, Epic Research

Mr Mustafa Nadeem, CEO, Epic Research Pvt. Ltd.

Indian equity markets ended down for third consecutive day and as we suggested yesterday it's a normal course of action. One cannot be on a bullish trend for more than 1000 points that too in Nifty and rule out a correction. This is healthy correction which is much needed to trim out the weak hands and let mature traders be placed at the right spot.

Now what's interesting is right now on daily chart Nifty has made a "Hammer" pattern with green body which is a bullish reversal, secondly trendline which was most talked about is now acting as a change of polarity, that means - Resistance becoming support.

Given above two bullish factors, we haven't seen a big "panic" change in open interest data from derivatives front that can make us a bit negative on market. So it's of course buy on dips for now and we have had a decent correction of 300 odd points.

Bank Nifty is still weighing due to stretched balance sheets with private banks also facing provisioning pressure. Pharma space, as we suggested back then and now as well that it's a defensive play along with IT and some select stocks from Metal space.

Source : Equity Bulls

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