

InvestorsObserver’s Sentiment Indicator looks at price trends over the past week and also considers changes in volume. If a stock is going up, investors must be bullish, while if it is going down, sentiment is bearish. At the core, sentiment is pretty easy to understand.

There are lots of ways to measure sentiment. Sentiment is how investors, or the market, feels about a stock.

Updates for the company such as a earnings release can move the stock away from current trends. As a technical indicator, it focuses on recent trends as opposed to the long term health of the underlying company. Sentiment uses short term technical analysis to gauge whether a stock is desired by investors. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.See Full ZM Report What is Stock Sentiment? He is also positive on sectors like autos, pipes & fittings and consumer durables, which derive a good portion of their revenue from rural areas. He is bullish on infrastructure sectors following the capex cycle. "In such phases, investors should be cautious as diversification among different assets becomes more important in such times rather than investing in a single asset." "Corrective phases are a great stimulator for investment activity," said Jadon from Windmill Capital. Leveraged or short-term commitments to the market can be counterproductive, they added. These phases of high volatility can result in large drawdowns in the short term. The recent correction is providing a good entry opportunity in some great businesses." "We like companies in the textile, sugar, EV, cement, and automobile segment. "We believe Q3 FY23 should see a positive inflow from FPIs," he added. Sharma from Green Portfolio believes that the majority of the negatives have been factored in and he continues to see a positive business outlook and supportive relevant economic indicators.

However, investors need to be cautious while allocating their capital. Experts believe that the upcoming month would be better for equity space, and domestic markets are poised for a rebound.
