Ambit Investment Managers' Managing Director, Dhiraj Agarwal, has identified a noteworthy trend in recent market behaviors. Over the last three to four months, despite intra-month volatilities, the market has displayed unwavering resilience, consistently bouncing back from the 19,200-19,300 level. If this support level holds, Agarwal anticipates the market to scale new heights.

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Agarwal sees a current trend where the market interprets almost every piece of news positively. While clear positive updates bolster market optimism, even hints of global uncertainties can be perceived as indicators of potential rate cuts, further buoying market sentiment.

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Taking a closer look at the market's evolving risk appetite, he said, “Market is chasing growth and the market is willing to take a slight amount of additional risk for chasing growth now as compared to a few months ago.”

As for the IT sector, Agarwal is bullish. With many believing the next quarter won't spring any negative surprises, he shares this sentiment.

"At this point in time, I don’t think IT will disappoint because, after the last quarter numbers, the bulk of the weakness for this quarter has already baked in," he mentioned.

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Agarwal also emphasized the growing importance of a nuanced approach in the current market scenario.

In light of unpredictable events like elections or global incidents, he advised, “Events will make the markets more volatile and it is certainly a time to be a lot more selective. The real stock-picking skills will now work as compared to just buying anything that you wanted to buy.”

The Nifty 50 Index was trading up half a percent at 19,800 at noon today.

For more details, watch the accompanying video

(Edited by : Shweta Mungre)

First Published:Oct 11, 2023 12:28 PM IST