Binod Modi, Head Strategy at Reliance Securities
Domestic markets traded in a range bound today with swinging between gains and losses in a narrow range. While most of Asian markets recovered in green after witnessing tepid opening, Indian broader indices remained choppy throughout the day.
However, strong buying remained visible in midcap and small cap stocks as investors find midcaps more attractive now due to wider valuations gap compared to large caps. Automobile, PSU Banks and Real Estate stocks witnessed sharp rebound today. Automobile stocks witnessed decent buying on the expectations of strong monthly sales volume for Nov’20. As current valuations look to be reasonably stretched and street is factoring a robust earnings growth, sustainability of rebound in key economic indicators will be crucial for the market in the near term. In our view, investors need to be cautious at these levels and focus on quality names. (Share Manthan, November 27th, 2020)
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