The Nifty broke its 200-day moving average (considered a major support zone) of 8,250 for the first time in nearly 15 months on Monday as domestic markets suffered their eighth loss in nine sessions. The Nifty has now corrected over 7 per cent in this fall.
Amisha Vora, joint managing director at Prabhudas Lilladher, says although the weakness in markets may persist for a while investors can start buying selectively around 8,000 levels in Nifty. However, Nifty may remain sideways for a while before moving upward, she added.(Watch)
Prabhudas Lilladher expects another 3-4 per cent correction in Nifty from these levels.
Stock recommendations
1) Infosys looks interestingly poised after recent correction as the management is talking about "above industry growth by FY2017 and has the courage to give a 2020 guidance. This gives very encouraging outlook for the stock," said Ms Vora.
2) UPL: The stock has done well over the past two years but the continuity in performance like top-line growth, margin improvement and free cash generation gives further confidence that at every correction including the current price is a good bet for investment, she said.
3) Federal Bank: Prabhudas Lilladher recommends buying the stock. The lender also has reasonably good outlook in-terms of asset quality while valuations look reasonable, she said.
4) KPIT Technologies: The stock has seen a significant correction after earnings warning by the management. The underline business outlook as well as the growth continues to remain reasonably attractive at these levels, she said. Exit by a private equity player has also caused some damage in the stock, she added.
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