Taking small hedged positions would be a better way to participate in the anticipation for a favourable outcome of the Lok Sabha election results, where the Modi government is widely expected to return for a third term, according to market analysts.
"The prudent strategy would be to buy after June 4. The incumbent government will return," Vinit Bolinjkar, head of research at trading and investment platform Ventura Securities, told NDTV Profit.
He said that following better quarterly results, FMCG space can be a "strong play." Banks not exposed to infrastructure lending, like in the small finance space, will be doing relatively well, he said.
"You want a strategy that is not impacted by the results. The real estate and consumption theme is a safer way to play it out," he said.
The Nifty 50 index will face resistance at 22,800 in the near term, a breach of which will take the benchmark to its next peak at 23,250, according to Jai Bala, founder and chief market technician at Cashthechaos.
He remains constructive about the equity market as long as the Nifty can hold 21,770, even though a significant correction is due.
In the banking space, as long as the Bank Nifty stays above 46,500, it can stay constructive. "Private sector banks are looking more vulnerable than public ones," he said.
India's benchmark stock indices ended the range-bound session higher, tracking gains in shares of Reliance Industries Ltd., Infosys Ltd., and Hindustan Unilever Ltd.
The NSE Nifty 50 settled 68.75 points, or 0.31% higher at 22,597.80, settling higher for the fifth consecutive session and recording the longest winning streak since April 25. The S&P BSE Sensex was up 267.75 points, or 0.36%, at 74,221.06.
"Among the sectors, FMCG was the top performer of the day, followed by realty and energy. On the flip side, the metals sector witnessed a round of profit booking after a spectacular rally in the previous session," said Aditya Gaggar, director, Progressive Share Brokers Pvt.
Watch the full conversation here:
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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