Dalal Street on confirmed uptrend: US brokerage company William O’Neil
Despite being the costliest stocks in the world, the Indian markets are on a “confirmed uptrend” and positive for new buys, according to American brokerage William O’Neil Company.
The markets raced past milestones on a record-setting spree on April 26, when the Sensex closed above the 30,000- mark for the first time in its history, while the Nifty too scaled a lifetime high, buoyed by unabated fund inflows and a global rally.
“The Indian market is on a confirmed uptrend and is a positive for new buys,” William O’Neil President Steven Birch told PTI in an interaction.
“We see the broader indices to be flattish and range- bound in short-term. We’d see them steadily rallying upwards, when the next couple of earnings season gets underway,” he said.
Noting that while the benchmark indices are trading close to their valuation peaks, numerous stocks are making fresh highs as well, which is a healthy sign of a market rally, Birch said.
“In this scenario, my advice is that it’s important to reserve capital for good quality stocks that reflect strong earnings and sales growth, stable RoE (return on investment), and growing institutional sponsorship, among others,” he said.
He also said investors should wait before making fresh positions in …read more