Pedestrians holding umbrellas walk past an electronic ticker board displaying stock figures at the Bombay Stock Exchange (BSE), which stands partially covered by scaffolding, in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Market Correction Should Be Considered Normal, Says JM Financial’s Gautam Shah

The market correction being witnessed is more of a price correction than a time correction and should be considered normal, according to Gautam Shah, associate director and technical analyst at JM Financial Ltd.

“The market is extremely light on speculative positions and extremely heavy on hedge positions,” Shah told BloombergQuint in an interaction, adding that the market would be a buy again, once it reaches the 11,400 mark.

The breadth of the market is the ‘only negative’ that is discouraging presently, Shah said. He, however, expects the disconnect between mid-caps and large-caps to gradually overcome, possibly during elections. “The mid-cap index will rebound.”

The market is prepared for a negative eventuality, or a possible negative eventuality in two to two-and-a-half weeks. I think, this market will find a floor very easily.
Gautam Shah, Associate Director and Technical Analyst, JM Financial

Key Highlights:

  • Option prices adding ambiguity to the market
  • Says don’t see major downside
  • Global market pull-down due to Trump’s tariff tweets should settle in few days
  • Global market strength will help Indian market get back on track
  • Price action needs to show strength

Watch the full interview here: