Equity benchmarks witnessed mixed opening on Tuesday tracking weak global cues. As of 10:30 am, the Sensex fell 134 points to 52,601 and Nifty 50 index slipped 43 points to 15,771.
RIL was the top Sensex performer, but selling pressure in bank stocks capped gains. Wipro was the top Nifty50 gainer in early deals, up nearly 1%. Titan, Tata Motors, Asian Paints and RIL were among other blue-chip top performers.
Speaking about the current market scenario, Milan Vaishnav, Founder of Gemstone Equity Research & Advisory Services, said, “So long as Nifty stays below 15,900-15,850, markets will remain vulnerable to profit taking bouts. don’t see any sustainable upside till we convincingly cross over 15,900. While Nifty may attempt to test 16,000 but if the markets move too soon too fast, it is also not healthy for the markets.”
Talking about the economy facing stocks and the expectations in sectors like banking, tourism, power distribution and all those which were also the focus of the Finance Minister’s relief package announced yesterday, he said that the financials are likely to remain lacklustre for sometime.
“The relief package was an old wine in a new bottle, so I don’t see sustainable reactions in markets. Some bounces can be seen in the respective sectors but the internal strength is lacking.”
He also said that when one analyses the Nifty and Nifty Bank rollovers, they are at a decade high fuelled by strong retail participation and this is continuing at market tops which is of concern. There are chances that the exuberance we are seeing may be at risk.
On the investors strategy, he said, “It is time to protect your profits and have stock specific approach in markets.”
TCS | Buy | Target : 3450 | Stop Loss : 3290
Marico | Sell | Target: 510 | Stop Loss: 545
Kotak Bank | Sell | Target: 1690 | Stop Loss : 1755
