Just attaching a few charts.
Please do your own research as in current volatile markets one needs to be swift. Below is just a quick technical view.
Although the Nifty has not taken a hit because of TCS, HUL HDFC Limited , Reliance Inds, ITC , Infy holding ground and being heavyweights combining almost 40% weightage.
We are seeing a lot of panic selling in distressed midcaps or pledge selling by brokers. Last month we saw Pipavav, kemrock etc and now we are seeing similar stuff in Alok Inds, Skumars, Plethico. Looks like a clear cleansing of any sort of leverage left in the market.
Quality stocks continue to be stable though.
PSU Banks seems to have taken a major hit. Right now many PSU Banks are available at a p-e of 4-5 whereas a HDFC Bank quotes at a price to book of 4-5 clearly showing the apathy towards PSUs.
If one has to focus on the sector then can bet on Bank of Baroda and SBI but be ready to see further 10-15% cut also.
On the index expect 5250 as an entry point. Also continue to be bullish and expecting dips from here to be a good buying zone slowly but focusing only on quality stocks and for investors who can digest some more dips after entering.
Happy Investing,
Nooresh Merani
