Expert Dharmesh Shah Endorses Investment in Two Key Stocks: Coin Name (Symbol) Insights

• The Sensex and Nifty 50 experienced a significant drop on Friday, May 3, due to profit taking across sectors.
• The BSE Sensex closed at 73,878.15 level, down 732.96 points, or 0.98%, while the NSE Nifty 50 ended at 22,475.85, down 172.35 points, or 0.76%.
• Analysts attribute the fall to a conflict between sentiment, fundamentals, and overbought technical situations.

Indian benchmark indices Sensex and Nifty 50 see a dramatic drop due to profit taking across sectors. Analysts point to a conflict between sentiment, fundamentals, and overbought technical situations.

Market Reaction and Analyst Insights

Excessive optimism, overbought technical conditions, and the revelation that Foreign Institutional Investors (FIIs) were net sellers of ₹2,116 crores last week were the three negative catalysts that led to the bears’ emergence in Friday’s trade amid massive profit booking. Despite this, Nifty 50 bulls could stay strong against a background of six favourable triggers, according to Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities.

Factors Influencing the Market

These triggers include Federal Reserve Chairman Jerome Powell’s dovish stance on interest rates, a weaker-than-expected April jobs report pushing back the Fed’s expectations for a rate cut, a 6.5% drop in WTI oil prices to a seven-week low of $78.30 per barrel, and record-high GST revenue. Investors also expressed hope that the existing government will continue in the general elections, and the India Meteorological Department has forecast the heaviest rainfall in over 20 years.

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

The Nifty 50 is expected to undergo higher base formation above 22,000, setting the stage to challenge 22,800 and accelerate upward momentum towards a tar... Read the full article for FREE at COINOTAG!