Though the RBI action has been on anticipated lines with 35 basis point hike the market is a bit nervous. What do you think is going to be the range going forward?
There is a bit of a selling pressure and I would call it more of a profit booking after a decent rally that we have witnessed. Maybe RBI’s policy made it just an excuse for markets to give up some bit of its gains. But if you take a look at how the US markets have been behaving, they have turned volatile and correcting a bit. So Indian markets are following suit.
I do not see too much of a hiccup though 18,550 is your immediate support on the downside. If that breaks, maybe 100-150 points further correction can be seen.
Bank Nifty is something that looks a little tired and a bit of a correction can be seen on that front. So traders should closely monitor 42,900 as that happens to be the immediate support, at the moment. If 42,900 breaks, then maybe traders can look for a short selling opportunity in the Bank Index and then a 400-500 points downside can be seen in the Bank Nifty. Overall as far as markets are concerned I see a bit of a profit booking but nothing alarming at the moment.
If you had to get stock specific, what will your top recommendations be?
So I have got a buy and a sell call because markets have turned little wobbly and volatile. Direction is little undecisive at the moment so LTIM is something which is your new merged entity looks weaker on the charts so one can go and initiate a sell at current levels. We have a target of Rs 4560, Rs 4550 on the downside with the stop loss at Rs 4750 on the upside.
The second stock recommendation is a buy from the FMCG space.
is something which stands out at the moment. So can be bought at current levels with the target of Rs 2780 on the upside with the stop loss at Rs 2630 on the downside.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
