Gautam Shah Founder & Chief Strategist of Goldilocks Premium Research sees 11,600 as a key support for Nifty, failing to hold which the index could slide to 11,000. In an interview with CNBC-TV18, Shah said there was weakness in the market, and advised caution.

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For Nifty Bank, Shah said the key support band was 23,500-23,700, and the lower end of the band had to hold for the uptrend to be intact.

He said he was not very confident on ICICI Bank, looking at the pattern on technical charts. Similarly, he is bearish on oil and gas stocks as well. He said ITC and Airtel were showing signs of bottoming out.

About the market as a whole, Shah said, “The current market scenario is little tricky, I think there are too many dynamics that play, pretty much global, whether it is US specific Presidential elections or the corona surge in the West, the rise in VIX and clearly the impact of all of this on the economy and the manner in which the markets have come off repeatedly from that levels of Rs 12,000 that just tells you that there is definitely little bit of weakness in the system.”

He further added, “It is difficult scenario, I think short term there could be some weakness, but from a medium term perspective this market is still very strong because it is low on leverage it is extremely light. I would be negative short term, but I would remain positive from a medium term perspective.”

“The near term trends get decided based on how 11,600 holds, if this does not we see a 5 percent dip and that gets decided in a couple of days possibly on the November 3rd and you don’t want to take on such events. So I would rather stay cautious, stay on the side-lines. Let the event pass and then take aggressive positions in the market.”

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(Edited by : Santosh Nair)

First Published:Oct 30, 2020 10:50 AM IST