Indian equity markets, Sensex and Nifty were trading flat amid volatility on Thursday afternoon led by gains in auto, PSU Banks, pharma and FMCG stocks. Broader markets were mixed as the smallcap index outperformed the benchmarks, while the midcap index was down marginally.
Kranthi Bathini, Director, Equity Strategies, Wealthmills Securities said, “markets have been range-bound and there is a dichotomy in the markets as to which direction will they move now. So far companies have reported a decent set of earnings but now going forward Q1 earnings come at the backdrop of the second wave so there is a concern there.”
He also said that fund flows from foreign portfolio investors have slowed down as well which needs to be watched.
On investors’ strategies amid the consolidation, he said, “Right now it is difficult for investors to find value but select stock picking is the way to go in this market. Traders can do a delivery based trading in the current scenario”
On the auto space he believes, there is some visibility in the auto space and the pharma sector.
On his specific stock picks, he said one can look to book partial profits in Rain Industries, which he had recommended to viewers on Money9 in February after the counter has given a peak return of 37%.
Sharing a new recommendation for the medium to long-term investors, he said, “One can look at investing Max India, which is currently trading at around Rs 70 and has a potential upside of 25% for a one-year duration.”
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