Ravi Singh of Religare Broking says open new long positions only if Nifty 50 decisively breaks the 24,500 level.

expert opinion: Dr. Ravi Singh, SVP-Retail Research, Religare Broking He believes that the current market outlook appears to be gloomy for the next few months, with potential positive momentum likely to occur only after January 15, 2025. He advised opening new long positions only when nifty Decisively breaks the 24,500 level, as this could signal the beginning of continued bullish momentum. However, current market dynamics indicate a strong presence of sellers, which is putting pressure on the overall sentiment. Edited excerpts:

What is your ultimate goal for Nifty December 2024?

As long as Nifty trades below the key resistance level of 24,500, Nifty remains in “Sell on Rise” mode. The index is likely to move towards 23,500 points in December due to significant presence of sellers at higher levels. For any meaningful gain, Nifty will have to remain above 24,500.

In the options market, the highest open interest for December monthly contracts is centered at 23,000 put and 25,000 call strikes. These levels represent key support and resistance areas respectively.

Do you believe midcaps and smallcaps will outperform the benchmarks even in 2025?

the current market The outlook for the next few months appears bleak, with potential positive momentum likely to occur only after January 15, 2025. Till then, the market may be in line with expectations for Budget 2025. After mid-January, mid Cap And small hat Stocks could potentially outperform benchmark indices, however, significant outperformance is unlikely before that time frame.

What is your view on the recent lackluster performance of major IPOs? How long do you think this trend will continue?

Display of IPO The quality of management and financial health of the issuing companies is affected to a great extent. However, market sentiment plays an important role. Given weak market conditions over the past two months, IPOs have struggled to deliver a strong performance, reflecting broader market challenges and investor caution.

Do you think the recovery will continue through the remainder of 2024 or will it pick up by the end of the year?

Benchmark indices are displaying a neutral to negative bias, calling for a cautious approach in the current market environment. It is recommended to initiate new long positions only if Nifty decisively breaks the 24,500 level, as it may signal the beginning of a sustained uptrend. However, current market dynamics indicate a strong presence of sellers, which is putting pressure on the overall sentiment.

What lessons did you learn from 2024?

The Stock Market in 2024 Reinforced Important Investment Lessons. This highlighted the importance of diversification as geopolitical tensions and economic uncertainties created instability. The need for a disciplined, long-term approach became critical. Ultimately, flexibility and informed decision making were important measures to deal with market challenges.

What challenges do you see for Indian markets in 2025?

Over the next year, two major risks – geopolitical and economic – are expected to have a significant impact on Indians stock marketProlonged geopolitical tensions could strain the market’s ability to maintain higher levels while the economy grapples with a number of ongoing challenges. If these issues are resolved favorably in the coming months, the market may maintain positive momentum. However, until clarity emerges, the overall outlook is likely to remain cautious and negative.

Do you expect FPI flows to return in December?

Continued positive performance in the stock market in the coming days could potentially attract foreign portfolio investors (FPIs) back into the Indian market. However, until such a trend is realized, FPI There is a possibility of being cautious. A clear direction of the market is expected to emerge only by mid-January.

What areas would you suggest avoiding next year?

The coming year is expected to present significant challenges for stock markets due to geopolitical and economic uncertainties. There is a possibility of pressure due to these factors it And Immovable property Area. Therefore, it may be prudent to avoid heavy exposure to these sectors in the near term. Instead, allocating investments to defensive sectors can provide greater resilience against market volatility.

An advice for new investors

For new investors, it is important to focus on long-term wealth creation rather than short-term gains. Start by diversifying yourself portfolio To eliminate risks across different sectors and invest in fundamentally strong companies. Avoid taking an aggressive approach with the current markets and wait for the market volatility to settle down.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decision.