Automobile and IT industry are expected to outperform in the coming months, says Gaurav Ratnaparkhi

Gaurav Ratnaparkhi also warned that Nifty may fall down below 15000

Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas, analysed that Nifty may fall below 15000 in the coming months, however, automobile and IT industry are likely to see a positive growth. “If the level of 15,000 is broken on a closing basis, then the index can go down to 14,400,” feels Ratnaparkhi.

Talking to a leading business daily, when Gaurav was asked if he ‘expects the IT sector to consolidate for a couple of quarters before turning into a positive mood’, the analyst says, “The Nifty IT index has been consolidating since the last few weeks. Structurally, the consolidation is near its maturity. So the sector can turn positive much earlier than that. In fact, short to medium term reversal could be around the corner over the next couple of weeks.”

When asked if he feels ‘another round of major correction in the market in the second half of CY22’, the Sharekhan head said, “A dip towards 15,000 can not be ruled out. That’s the base case scenario we are considering. However, if the level of 15,000 is broken on a closing basis, then the index can go down to 14,400. If we look at the entire correction that started from October 2021, then it has taken the form of a broadening formation and lower end of that pattern is near 14,400.”

Ratnaparkhi also pointed out that the auto industry will outperform in the coming quarters, “Multibagger in coming quarters will be a too optimistic expectation. Nevertheless, the Auto index can definitely continue to outperform and is expected to surpass its record high soon.”

He also added when asked if he can see a major correction in the coming months, “The auto and IT sectors are expected to outperform in the coming months. Autos have been showing strength and can continue to remain strong whereas IT is gearing up for a reversal.”

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