Sensex, Nifty near 2-month lows; exercise caution, prefer value over growth stocks
时间:2024-06-17 18:22:56 阅读(143)
By Rahul Shah
The Sensex and Nifty benchmark indices plunged as policymakers across the globe aggressively paddle on monetary policy tightening. The Sensex tanked 2225 points or 4% to close at 54,836 and the Nifty shed 690 points or 4% to close at 16,411. This was the benchmarks’ lowest level in two months. Record-high inflation levels, dented prospects of corporate profitability and the likelihood of contraction in economic growth continue to have a negative impact on the market. The single important factor roiling global equity markets is the reemergence of inflation as a major threat and Investors should remain calm in these turbulent times without taking aggressive positions. Calibrated buying on declines in small quantities in high quality stocks with preference for value over growth would be a good investment strategy.
In the domestic factor, the Reserve Bank of India joined global central banks in raising interest rates as it hiked the key repo rate by 40 bps, triggering an over 2 per cent fall in the equity markets on Wednesday. A Reuters report said the surprise hike came as the central bank feared “shocker” inflation numbers for April. The move has severely dented investor confidence as borrowing costs are set to rise for producers and consumers alike, and liquidity of over Rs 80,000 crores will be drawn out of the banking system from the latter part of May, due to the 50 bps increase in CRR rates. US Dollar Index surged to 20-year high of above 104% and US 10-year bond yield spiked to 4-year high to above 3.07% with worries of economic slowdown in the US economy, the Federal Reserve raising rates, and a major selloff in US stock exchanges.
With prospects of ease in inflation turning bleak and growth estimates seeing downgrades globally, investors are seen pulling out their investments from riskier assets to relatively safer bonds. This is evident from the steep rise in bond yields both overseas and back home. The yield on the 10-year treasury in the US, for instance, rose to over 3 per cent on Thursday, hitting its highest level since 2018.
FIIs were net sellers of nearly $2 billion or Rs 12733 crore just four trading sessions while DIIs were net buyers worth Rs 8533 crore during the previous week.
SELL Ciplatarget: Rs 880 | Stop loss: Rs 955Cipla has given a breakdown on the daily scale and has been inching lower. It is making lower top and lower bottom indicating weakness in the trend and has closed below its 50 DEMA. RSI oscillator is also negatively placed on the daily and weekly scale. • Considering the current chart structure , we advise traders to sell the stock of a down move towards 880 with a stop loss at 952.
BUY Coal IndiaTarget: Rs 200 | Stop loss: Rs 183Coal India has taken support at the 50 DEMA placed near 183 and has formed a bullish candle on the daily scale with long lower shadow indicating buying interest from support zones. RSI oscillator is also positively placed on the daily and weekly scale. Considering the current chart structure, we advise traders to buy the stock for an up move towards 200 with a stop loss of 183.
(Rahul Shah is a Senior Vice President, Group Advisory Leader-PCG, Broking & Distribution, Motilal Oswal Financial Services. Views expressed are the author’s own. Please consult your financial advisor before investing.)
Also Read: Zerodha’s Nikhil Kamath tells when to buy stocks, shares Buffett formula to find the right time
FII and DII trades: Foreign Institutional Investors (FII) have been net buyers of domestic stocks for successive days now. On Wednesday, FIIs pumped in Rs 2,347 crore. Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 510 crore yesterday.
IPO watch: Syrma SGS Technology enters the final day of bidding today. So far the issue, that opened last week, has been subscribed 2.27 times. Retail investors have subscribed their portion 2.66 times while NIIs have bid for their quota 3.58 times and QIB portion has been bid for 0.71 times.
下一篇:WOW! Tourists enjoy frozen waterfall in Baramulla’s Drung – See Stunning Photos
猜你喜欢
- YearEnder2023- From Barbie to Koffee with Karan, a sneak peek into CGI ads rolled out this year
- Nandan Nilekani-backed Divgi TorqTransfer Systems IPO opens for subscription, GMP rises; should you apply-
- Nifty holds 17350 after RBI MPC hikes repo rate, charts show indecisiveness; rally possible on 17500 breakout
- Winter Whispers- Unveiling Hong Kong’s hidden outdoor havens for nature enthusiasts
- Nifty could top 17900 above 17750, Bank Nifty may hit 41000 if it closes above 39500; here’s what analysts say
- Mutual funds increase oil & gas sector weight to 14-month high in April, position in Technology stocks reduced
- Ease in retail inflation to 15-month low of 5
- Exploring the significance of ESG data in shaping sustainable business practices
- Nifty IT hits 52-week low on Thursday, fall in rupee doesn’t help