Don’t chase the momentum, it may burn your fingers: Mazhar Mohammad, Chartview

Domestic equity benchmarks Sensex and Nifty were trading weak on Wednesday, a day before the expiry of September expiry. While the Sensex was hovering around 59,165, the Nifty was trading below 17650.  Nifty Bank on the other hand was seen underperforming the benchmarks as it was down 1.3% in early trade to 37,450. Mazhar Mohammad of Chartview India spoke to Money9 on whether the dips could escalate into deeper cuts for the markets. "Seeing classical signs of topping out of markets and we need to analyse this further. It will be critical to watch whether markets will see a pull back again and the Nifty will see a closing back above 17,950 to gain the strength to move towards 18,000 levels or any dip below 17,570 could actually result into a deeper cut", he said. As a strategy for investors he said that, it has been a vertical move so far in the markets which is being questioned by all technical , fundamental and valuation parameters. "Long term investors should wait for more corrections to enter or just buy some laggards like ITC for some value buying while the short term traders should wait for some stability in markets. The better strategy would be to sit on cash and wait for correction, else miss the last leg of the rally and not chase the momentum and burn your fingers", he added. Stock Recommendations Biocon | Buy |  Target: 390 | Stop Loss: 350 Canara Bank | Buy | Target: 171 | Stop Loss: 159 BHEL | Buy | Target: 68 | Stop Loss:  55