See a healthy correction in markets of 3-5% in the near term: Rahul Sharma

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Domestic indices continued to hold on to gains until the first half of the trading session with the Nifty trading above the 15,800 levels. BSE Midcap and Smallcap indices were trading with a 0.5-1% gain. Except for FMCG and energy, all other sectoral indices were trading in the green.

Rahul Sharma, Equity 99 told Money9. “Markets are facing selling pressure at higher levels. 15,950 will remain as the key resistance in the coming days for the Nifty. Once that is crossed, we can definitely look at 16,100 levels.”

He also said that he is bullish on markets in the long run despite any near-term dips.

“July series may also be volatile, however, agro-chemicals, monsoon focussed stocks and chemicals will be in focus. Banks will outshine in July series while overall Nifty is likely to remain range-bound,” he added.

He however believes that one cannot rule out a correction in the short term.

“I personally see about 2-3% correction in the near term, it could also extend to 5%, but it will be seen as a healthy correction. Markets cannot move only in one way. Lowering positions could be a good idea at these levels, book some profits.”

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