If oil is coming down then anything that uses oil goes up, like airline stocks, tyre companies etc. So, if oil trade reverses then itâ€™s good for the Indian economy, says Ashwani Gujral.
It was third day of weak closing for Dalal Street. Nifty fell more than half a percent to end at one-month closing low, down 68.80 points at 10,118.
While the 30-share BSE Sensex slipped 181.43 points to 32,760.44, dragged by metals, FMCG, pharma and select banks stocks.
Ashwani Gujral of ashwanigujral.com is of the view that on the Nifty we are reaching the levels where we made two tops â€“ one closer to 10,150 on Nifty Futures and other was 10,180 but given that Bank Nifty is not showing follow through on the downside, and we having reached 50 day moving average on Nifty â€“ these are critical zones.
So, would like to try out some contrarian long positions, particularly Bank Nifty. We seem to be at the bottom-end of the range both for Nifty and Bank Nifty. Therefore, unless this becomes a global correction, we have reached zones where one can start buying. Keep a stop on Nifty around 1,100 and on Bank Nifty around 25,100 on Futures is decent stop.
So, if large financials like Kotak, HDFC, ICICI Bank see buying, it is difficult to take the market lower.
Meanwhile, Gujral says if oil is coming down then anything that uses oil goes up, like airline stocks, tyre companies etc. So, if oil trade reverses then itâ€™s good for the Indian economy and that could be the reason why banks are not falling.
Market expert Anand Tandon says it looks like liquidity is slowing a bit, mutual fund inflows are a little less robust and IPO market is robust. That puts a cap on where the market can go on the upside.
In the same interview, SP Tulsian of sptulsian.com. Prakash Gaba of prakashgaba.com, Mitessh Thakkar of mitesshthakkar.com, Dipan Mehta, Member, BSE & NSE also shared their views on some stock specific action.