5 stocks to buy in a bearish market
Pratip Chaudhuri, chairman of the State Bank of India, said reducing the cash reserve ratio (CRR)—the amount of deposits that banks must keep with RBI—to 4% will free up about Rs 7,500 crore.
The BSE Sensex declined over 200 points lower Monday while the Nifty index traded close to the crucial support of 5,250. Despite bearish sentiments on the Street, analysts told NDTV Profit that the medium to long term setup for markets remained positive.
G Chokkalingam, ED & CIO of Centrum Wealth Management said the Sensex may scale 22,000 by the end of this calendar year. "The trigger should come from monetary policy next week. The Reserve Bank should cut repo rates by 25 basis points," he added.
"5,250 is a significant support for markets. Despite the correction, markets don't look bad. A close below 5,155 would mean that all hell would break loose. However, for all the anticipated positives to happen, the Nifty needs a close above 5,410," Hemen Kapadia, CEO, www.chartpundit.com told NDTV Profit.
G Chokkalingam views:
Possible triggers for markets are a forecast of a normal monsoon, improvement in current account deficit on the back of fall in gold import.
Stock tips:
1) Nesco:
Buy for 25-30% upsides from current levels.
2) BASF India:
Buy for 25-30% upside from current levels.
3) Engineers India Limited:
Buy for 25-30% upside from current levels.
(For nine months)
Hemen Kapadia, CEO, www.chartpundit.com
Minor correction is likely to continue for the next 2-3 trading sessions and further downsides look limited. Nifty is likely to trade between 5,150-5,410 for the next 10 days.
Stock tips:
4) SBI:
Buy with a target price of 2300 and a stop loss at 2000.
5) Educomp:
Buy with a target of 211 and a stop loss of 190.
(For 3 weeks)