look news india
With the beginning of the festive season, the Indian stock market has reached a turning point. The domestic stock market is under pressure amid fluctuations in global crude oil prices, selling by foreign institutional investors (FIIs) and geopolitical tensions. According to technical analysts and leading brokerage firms, the level of 21,400 is acting as a very strong and decisive support for Nifty 50 in the current downward trend. As long as Nifty remains above this level, this correction could become a great buying opportunity for long-term investors.
Market experts believe that despite limited fluctuations in the index, there are much better valuations and growth potential in select sectors. In such a situation, if the market makes a base at the level of 21,400, then a sharp recovery can be seen from here in the next 3 to 4 months.
The market movement during October will largely depend on the second quarter (Q2) results and festive demand. The first ones on the radar of brokerage houses are shares of banking and automobile sectors. Record sales of two-wheelers and passenger vehicles are expected due to improvement in the rural economy and the festive season.
-
Tata Motors: The company continues to dominate the domestic commercial vehicle market and electric vehicle (EV) segment. According to the brokerage, this stock can touch new highs in the perspective of 3 to 4 months.
-
HDFC Bank: After the merger, the credit-to-deposit ratio of the bank is continuously improving. Due to attractive valuations in the private banking space, brokerages are considering it as an excellent option for ‘buy on dips’.
The pace of government capital expenditure (Capex) and expansion of infrastructure has not slowed down. The order book is continuously increasing due to the ongoing infrastructure projects in every part of the country.
-
Larsen & Toubro (L&T): Large orders from India as well as Middle East have made the company’s position very strong. Even on technical charts, this stock looks stable and can give strong returns in 3-4 months.
-
BHEL: Due to new projects of thermal power and nuclear energy, a strong re-rating is expected in this PSU share. Brokerage firms have described it as the preferred pick for medium-term portfolios.
Whenever there is uncertainty in the market, defensive sectors like IT and pharmaceuticals are chosen to provide stability to the portfolio.
-
Infosys: Brokerage confidence in Infosys has increased due to digital transformation and AI-driven deals in the large-cap IT sector. The company’s margins are also being supported by the trend of the rupee against the dollar.
-
Sun Pharma: Sun Pharma continues to outperform due to its specialty portfolio and strong hold in the US market. It is among the brokerage’s top priorities for safe investments in the healthcare sector.
Whether you are trading from Lucknow, Kanpur, Delhi, Jaipur or Mumbai, it would be wise to allocate funds in a measured manner rather than aggressive trading at this time. Keeping in mind the support of Rs 21,400 as the stop loss level, investors should buy in staggered manner instead of investing lump sum money. In the next 3 to 4 months, the positive impact of festive demand, pre-budget discussions and quarterly results can be clearly seen on these quality stocks.