The Nifty 50 index has declined nearly 2% or over 400 points on Friday, February 28, extending their fall from the September 2024-peak to nearly 16%.
In an interaction with CNBC-TV18 on Friday, Srivastava said that plenty of short, medium and long-term indicators are converging to oversold levels on the charts and he would not like to be a seller at these levels.
The number of stocks which are currently trading above their 200-Day Moving Average (DMA) are at 9%, which is the lowest level since the Covid-19 pandemic, when that figure was 5%.
Srivastava mentioned that he would look for opportunities like banking and metals, while PSUs took look oversold and may offer some opportunities. He highlighted that people are watching global headlines because there is an absence of local newsflow.
The sell-off on Wall Street overnight is also a key trigger behind the meltdown witnessed on Dalal Street on Friday. The Nasdaq fell over 550 points led by a 8.5% drop in Nvidia post its results.
Srivastava mentioned that the US government policies are aimed at lower bond yields and a weaker US Dollar.
The Nifty 50’s 400-point fall on Friday has taken the index to 22,100 levels and Srivastava’s floor implies a further 100 point fall on the index.
