New Delhi, Oct 27 (IANS): After six continuous days of losses triggered by the elevated bond yields in the US and tensions in West Asia, the market appears to be oversold, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Shorting in the FPI overweight segments like banking and IT have contributed significantly to the sharp market correction, he said.

The US economy’s resilience is surprising. The Q3 GDP growth at 4.9 per cent means the Fed will continue to be hawkish and the likely ‘higher for longer’ interest rate regime is negative from the stock market perspective, he added.

On the positive side, valuations in India, which were high, have now turned fair and in sectors like banking valuations are attractive. This is the time for cherry picking for long-term investors. History tells us that corrections triggered by geopolitical events were opportunities to buy, he added.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty has indicated “Three Black Crows” on the daily chart extending the slide further to touch the 18,850 zone achieving the initial downside target as mentioned earlier, with sentiment and bias maintained cautiously.

The index would have the crucial support maintained near 18,600 levels of the important 200 period MA below which the matter can turn worse with 18,200 level as the next major base zone. The support for the day is seen at 18,700 levels while the resistance is seen at 19,100 levels, Parekh said.

BSE Sensex is up 551 points at 63,699 points on Friday. SBI is up 2.4 per cent.