The benchmark Nifty 50 index is caught in a tight range and needs to close above 22,125 for a breakout, according to market expert Hemen Kapadia.
"The Nifty has been in a range (of) 21,137–22,125; it has gone above that four times intraday," Kapadia, senior vice president of equity at KR Choksey Stocks & Securities Pvt., told NDTV Profit. "We have closed over the higher mark on Thursday and slipped back (down) again."
The Nifty needs to close above 22,125 and the India VIX (volatility index) needs to close below 15, he said.
"Bank Nifty isn't bad but it needs to not break 46,500 and overcome 47,100," he said.
The NSE Nifty 50 ended 90.65 points, or 0.41%, lower at 22,122.05, and the S&P BSE Sensex fell 352.66 points, or 0.48%, to end at 72,790.13.
The Nifty slumped 0.62% to touch an intraday low of 22,075, and the Sensex hit 72,666.82.
Kapadia has a repeat buy call on Adani Enterprises Ltd. and feels the stock will go to 3,800–4,000. "I'm reasonably confident of further upside. The only risk would be market risk."
G. Chokkalingam, founder and managing director of Equinomics Research Pvt., said it is difficult to see consistent performance from oil marketing companies. "Since these stocks have gone up substantially from the bottom, I would focus on stocks like ONGC Ltd. rather than OMCs for the short term."
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