We expect increased volatility in the Indian equity market over the next two weeks . The major factors to watch out for are :
In absence of any strong domestic factors , global sentiments will drive the market . The USA elections will be of great significance for the market . This is more so for the diametrically opposite views of the candidates involved .
Opec meeting will determine the next course of movement for Oil. In case the meeting remains inconclusive like the last few meetings , we may see a sharp correction towards USD 45 for US Oil . Any hope of production freeze or greater cooperation on the other hand will take US Oil past USD 47. Oil has been range bound between USD 45 and USD 47 for some time now. We may see a breakout in the next few days .
RBI is expected to hold rates in their October meeting. In case RBI surprises the market with a rate cut , we will expect the rally in rate sensitives to resume.
NIFTY trades should look at taking short positions with strict stop losses .
Investors can wait on the sidelines for the market to correct before taking new positions.
In recent past the spread between the Large caps and Mid caps valuations has narrowed down . We expect this trend to continue . With GST and other structural reforms we expect some of these companies to emerge as large caps in not so distant future .Investors may keep an eye on our Multibagger stock Ideas .