Markets Holding On Strong To Support Levels, Says Analyst
The benchmark indices witnessed range-bound activity and intra-day buying in selective IT stocks on Tuesday.
Equity markets aren't enduring at higher levels but are holding strongly to the current support levels, according to Vaishali Parekh of Prabhudas Lilladher Pvt.
The NSE Nifty 50 has a support level of 22,200 and the Bank Nifty at 47,000, the vice president of technical research told NDTV Profit. She suggested buying on every dip, along with stock-specific investing and disciplined trading.
"I'd be a bit conservative, wouldn't go all out but will take calculated risk," she said.
Parekh recommends a 'buy' for shares of Tata Communications Ltd. at Rs 1,980 apiece, stop loss at Rs 1,900 at a target price of Rs 2,100 per share, along with a 'buy’ call for HEG Ltd. at Rs 1,800 apiece; stop loss at Rs 1,650 at a target price of Rs 2,100 per share.
The NSE Nifty 50 settled 3.05 points or 0.01%, up at 22,335.70, and the S&P BSE Sensex closed 165.32 points or 0.22%, higher at 73,667.96.
The benchmark indices witnessed range-bound activity and intra-day buying in selective IT stocks on Tuesday, according to Shrikant Chouhan, head of equity research at Kotak Securities.
After an intraday technical bounce back, the Nifty and the Sensex took resistance near 22,450/74,000 levels and corrected sharply. On intraday charts, it's still holding a weak texture, which indicates weak sentiment, and is likely to continue in the near future, Chouhan said.
Small- and mid-cap segments were always a quality-focused portfolio, according to Dharmesh Kant, head of equity research at Cholamandalam Securities Ltd.
Kant said investors should pick and choose small-cap companies that have the tendency to grow and become a larger entity, which will make them more money.
Amid the recent advisory by the Securities and Exchange Board of India to mutual funds, Kant said there is a lot of profit booking taking place in the small and mid-cap sectors, which is likely to stay for two more quarters.
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