Tips for Trade: Nifty to trade rangebound; go for rate sensitives, avoid oil stocks
CS Verma, chairman, SAIL told NDTV Profit that the company has witnessed a setback in the international market in terms of demand. “Demand will pick up ahead with a rise in the infrastructure spending. We will pass on the cost per kilo to consumers, which
India’s equity indices ended in a green territory on the first day of the week. The BSE Sensex ended 23.24 points or 0.15 per cent at 15988.40, while the NSE Nifty closed at 4848.15, up 6.55 points or 0.14 per cent.
Rate sensitive stocks like realty (1.35 per cent), banking (0.83 per cent) and auto (0.80 per cent) rebounded from the day's low. Gains in energy (1 per cent) and capital goods stocks (1.85 per cent) also helped the benchmarks gain strength.
On our show Tips for Tomorrow, Gaurang Shah, Assistant Vice President, Geojit BNP Paribas Financial Services and Dipan Mehta, Member BSE & NSE, discuss the market performance of the day.
MARKET VIEW
In Gaurang Shah’s view, there will be a selling pressure in the market at high levels, which will restrict the Nifty to the 4885-4945 level.
Dipan Mehta expects the market to trade range-bound in the near team. “RBI policy, Greece elections will give direction to the market,” he said.
TO BUY BANKS OR NOT
One should start accumulating shares of private banks like Yes Bank, IndusInd Bank, Bank of India and Bank of Baroda, says Shah.
Mehta suggests avoiding banking stocks till all major events in this month get over.
OIL STOCKS
Shah is bearish on oil marketing companies. “The only fundamentally sound stock is BPCL,” he said.
In Dipan Mehta view, oil companies are unfair to minority shareholders. “A fall in crude prices is a temporary event. We recommend selling oil stocks,” he added.
FMCG STOCKS
Stocks like ITC, Godrej consumer, HUL could be bottom dips, says Shah.
Mehta feels that FMCG counters are still trading at a premium and their valuations are not attractive currently. “It is risky to buy these stocks at current levels,” he added.
BEST BUYS
Gaurang Shah’s bets
Buy: CMC, TCS, Tata Motor, M&M, Yes bank, IndusInd Bank, Bank of India & Bank of Baroda, Tata steel, Hindalco, ACC & Shree cement, Glenmark, Cipla, Divi’s Labs, and Strides Acrolab
Target: Expect 15-20 per cent upside from current levels (for 12-16 months)
Dipan Mehta’s bets
Export-oriented counters are best buys
Also IT, pharma, auto ancillary