Shares in India sold off on Thursday on negative global cues and some disappointing third-quarter earnings numbers from Larsen & Toubro and BHEL. Earning cues would be important on Friday too as heavyweights Reliance Industries and Bharti Airtel declare their results. Technical Analyst Hemen Kapadia on chartpundi
t.com said he does not see too much of a breakdown from current levels. “If the Nifty bounces back and closes above 5,100, I wouldn’t be unduly worried.” The markets have been struggling to go further up, said K Ramchandran, CIO of Karvy Private Wealth. “The Nifty has struggled to go beyond 5,300 and it had go either way — up or down.” “Once the RBI’s monetary policy is out of the way, I expect markets to bounce back strongly,” he said, adding that he would be surprised if the Nifty went below 5,000. As the economy continues to stabilise, investors should bet on midcap stocks for better returns, he added. Engineering giant L&T posted disappointing revenues and stock tanked on the bourses but Deven Choksey, Managing Director of KR Choksey said such events were opportunities to buy. “The L&T management admitted it faced execution delays in projects but is confident of achieving 10% growth. If that happens, L&T is still poised to have a record year and such disappointments create opportunities for investors to buy the stock at lower levels.” Among sectors, Ramchandran said most banks had posted good quarterly earnings and looked appealing from a long-term perspective. “The core business of banking has not picked up because the credit off-take has been dismal. When business and industrial activities pick up, it will give a strong impetus to credit off-take in the coming quarters,” he said. “I am positive on banking sector stocks.”
t.com said he does not see too much of a breakdown from current levels. “If the Nifty bounces back and closes above 5,100, I wouldn’t be unduly worried.” The markets have been struggling to go further up, said K Ramchandran, CIO of Karvy Private Wealth. “The Nifty has struggled to go beyond 5,300 and it had go either way — up or down.” “Once the RBI’s monetary policy is out of the way, I expect markets to bounce back strongly,” he said, adding that he would be surprised if the Nifty went below 5,000. As the economy continues to stabilise, investors should bet on midcap stocks for better returns, he added. Engineering giant L&T posted disappointing revenues and stock tanked on the bourses but Deven Choksey, Managing Director of KR Choksey said such events were opportunities to buy. “The L&T management admitted it faced execution delays in projects but is confident of achieving 10% growth. If that happens, L&T is still poised to have a record year and such disappointments create opportunities for investors to buy the stock at lower levels.” Among sectors, Ramchandran said most banks had posted good quarterly earnings and looked appealing from a long-term perspective. “The core business of banking has not picked up because the credit off-take has been dismal. When business and industrial activities pick up, it will give a strong impetus to credit off-take in the coming quarters,” he said. “I am positive on banking sector stocks.”