Mr. Manghnani suggests buying Reliance Industries at every fall
The Nifty fell over 2.3 per cent to close at 7,568 after a market crash in China triggered a fresh global selloff. Anil Manghnani, director at Modern Shares & Stock Brokers, told NDTV that if Nifty fails to hold 7,540, which was last seen in September, then it could fall straight away to 7,370 and then 7,200.
"If Nifty breaks 7,540 then we could see 7,370 and then 7,200," said Mr Manghnani. (Watch)
A break below 7,540 may also lead to a selloff in broader markets, which have remained protected from selloff so far as, said Mr Manghnani.
Although Thursday's market selloff was related to China, in the near term Indian market will depend more on US and oil, rather than China, he said. "If S&P cracks below 1,960, then that will be a cause of big worry, because below 1,960 on the S&P, the next target is somewhere around 1,810," he added.
He suggests buying Reliance Industries at every fall. He is also bullish on airline stocks as he expects oil to remain weak for a longer period of time.