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Dr Reddy’s Q4 Results: Pharma major declares 800% dividend despite 86% plunge in profit to Rs 220 crore

Cipla Ltd, the Indian multinational pharma company, rose 29 per cent in the last year compared to 11 per cent gain seen in the Nifty50 in the same period.

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The pharma stock bucks trend as it rallied 12 per cent in a week compared to 6 per cent rally seen in the Nifty50 in the same period. The recent rally despite muted global cues resulted in a breakout which puts Cipla on buyers' radar.

The stock with a market capitalization of more than Rs 84,000 cr, hit a fresh 52-week high of Rs 1057 on 14 March and technical suggest that the stock could well surpass 1200 levels in the next 6-9 months translating into an upside of about 20 per cent from Rs 1044 recorded on 11 March, suggest experts.

Cipla is the third-largest pharma company in India, the third-largest in the private pharma market of South Africa (IQVIA March 2021) and the largest Indian exporter to emerging markets and amongst the most dispensed generic players in the US.

The Company has a presence in branded and unbranded generic market franchises, with leadership positions in India, South Africa, priority territories in Emerging markets, Europe, and the US, across major therapies and products categories.&nbsp;&nbsp;

Cipla produces over 200 generic and complex APIs and supplies to 63 countries across the globe, the company website said. The company has a robust pipeline of 75+ APIs across regulated markets in varying stages of development.

Technically, the stock is trading well above the crucial short- and long-term moving averages such as 30,50 and 100-Days Moving Average.

The stock reclaimed 50-DMA placed at 931 on 3 March, 2022 and since then we have seen a vertical rise in the stock, data from Trendlyne showed.

[[{"fid":"177495","view_mode":"default","type":"media","link_text":null,"attributes":{"height":738,"width":1317,"class":"media-element file-default"}}]]&nbsp;After March 2020 low of 355, the stock price has been in a long-term uptrend forming a higher top and higher bottom on the weekly chart i.e., each new high after an up move is higher than the previous high, and each new low after a decline is higher than the previous low.

“For the last 8 months, the stock has been trading in a sideways range between 850 and 1000 odd levels. It has been consolidating after the strong up move and formed a base for the next leg of the rally. This week stock has given a breakout on the upside with strong momentum and high volumes,” Ashish Chaturmohta, Director, Equity Research, Sanctum Wealth, said.

“It has formed a long body bullish candle on the weekly chart at breakout indicating buying participation in the stock. The Moving average convergence and divergence line (MACD) has given positive crossover with its average on the weekly chart. MACD has given turned up from equilibrium level of zero suggesting start new uptrend,” he said.

Chaturmohta said that the stock can be bought at current levels and dips to 1020 levels with a stop loss of 970 for a target of 1250 in the coming 6-9 months.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

The recent rally despite muted global cues resulted in a breakout which puts Cipla on buyers' radar.


Technical Check: Long bullish candle on weekly charts puts this pharma stock on buyers radar; see 20% upside in 6-9 months

Mitul Shah, Head of Research – Institutional Desk at Reliance Securities Ltd expects FII inflows to return in 1HFY23, while the DII investments would continue in 2022, and equities would outperform with double-digit returns. Our year-end 2022 target for Nifty is 20,000 at 22x FY24E earnings.

Shah has over 17 years of work experience in the industry. He has been actively tracking auto and auto ancillary companies for the past 11 years as a lead Analyst.

In an interview with Zeebiz's Kshitij Anand, Shah said that if crude prices remain high at $120/bbl for a year, it could impact GDP by 2-3% and add 1% to inflation.

Edited excerpts:

Q) Bulls have taken a back seat as bears took control, pushing benchmark indices below crucial support levels. What is your take on markets?

A) Market may remain volatile due to the Russia-Ukraine crisis. The trend in global equities, movement of rupee against the US dollar, and crude oil prices will dictate the trend in the near term.

Yes, the bulls have taken back sheen for a while. However, the Indian economy is in better shape given the underlying stellar corporate earnings momentum, the cleansed balance sheets, improving asset quality of the banks, levers in place for capex cycle revival and credit off-take, probable manufacturing resurgence given PLI and other government reforms.

This coupled with increasing DII participation can revive the markets sooner than expected once prevailing clouds of uncertainty disappear.

However, in the near term, the ongoing geopolitical issue would have negative bearings on global equity markets including Indian equities.

We expect FII inflows to return in 1HFY23, while the DII investments would continue in 2022. Equities would outperform with double-digit returns. Our year-end 2022 target for Nifty is 20,000 at 22x FY24E earnings. 
&nbsp; 
Q) Crude oil nearly hit $140 mark. What is the kind of impact you see on markets, the economy, and India Inc.?

A) India net imported 1.25 bn bbl of oil in the last 12 months, which is expected to increase to 1.5 bn bbl/year, higher prices are likely to lead to higher import bills and also push prices of gas, coal, edible oil, and fertilisers upwards.&nbsp;&nbsp;

At these prices, demand destruction would be a global phenomenon. Further, the current oil price spike is due to a lack of clarity on procedures; Russian energy is sanctioned.

We expect crude oil should correct from the current level of US$120/bbl, but if it remains high at the current level for a year, it could impact GDP by 2-3% and add 1% to inflation.

India imports 45%-50% of energy needs and any further rise in energy prices is likely to impact growth. Though India's dependence on imported energy as a percentage of GDP has fallen in the last couple of years, but it remains high at 3% in FY22.

If current prices sustain for a year, the impact on the balance of payments and productivity, in our view, can hurt FY23 GDP sizably.

The impact on CPI could be 100bps, given the rise in edible oil, and second-order effects from freight, as well as pass-through in FMCG.

Q) Will rising crude oil impact earnings growth in the March quarter?

A) Crude prices have made a new high after a sharp increase in the last few days, amid the possibility of US sanctions on Russian Oil. The overall situation is worsening for most of the sectors.&nbsp;&nbsp;

As crude price increase, it has a direct co-relation with Petrol and diesel prices, which is inversely related to consumers’ affordability.

We see some impact of rising crude oil prices in March quarter’s earnings, as Crude price shot up in the March month only.

Higher RM cost visible in 9MFY22 which impacted the margin across sectors and likely to remain at an elevated level in 4QFY22.

Higher crude price impacts raw material cost, freight cost, power and fuel cost, energy cost, etc for manufacturing companies, which certainly impact earnings due to limited ability to pass on cost inflation to the consumer in this environment.

Q) What is the kind of impact you see on markets as well as reforms post-state election results?

A) The Indian equity market has been on a strong footing in the past year, largely backed by a strong earnings cycle and a robust macro-economy.

Several policy initiatives such as lower taxes, PLI schemes, and higher infra spend and Make in India initiatives.

Also, prudent policy measures helped India Inc. weather the pandemic crisis deftly leading to better-than-expected earnings performance.

Along the way, the RBI too has been supportive of its policy measures. With positive state election results market has been cheering it and appreciated the outcome.

Q) There is no stopping of FIIs as they pull out more than Rs 18000 cr from the cash segment of Indian equity markets in just 3 sessions. What is the trend you foresee for FIIs amid the US Fed rate hike possibility and Russia-Ukraine war?

A) During October 2021 to till date FPIs have sold worth Rs 1,448bn, which is compensated by DIIs by buying Rs1,412 bn in the same period.

In the past, we have observed that volatility in the market persists till the announcement of first the rate hike by the US Fed, post that it settles down and flow in equities resumes.

We expect a similar trend this time. We expect FII inflows to return in 1HFY23, while the DII investments would continue in 2022. Equities would continue with the outperformance with double-digit returns.

Given the current scenario of a tepid return from fixed incomes globally and a continued soft monetary policy by the global central bankers, we expect a rebound in FII investments in Indian equities by the beginning of FY23.

Though the Fed’s tightening measures and inch-up in interest rate would play important roles in 1HCY22, 2HCY22 would witness a reversal of flows due to the strong economic factors and India’s strengthening position in the global manufacturing arena.

Moreover, despite the rate hikes, returns from fixed income instruments would remain much lower than the historical average and lower than the long-term equity returns.

Factors that should essentially continue to attract FII inflows to Indian equities include:

(a) better return prospects, as the Indian economy is still set to deliver better returns versus several developing and developed nations; 
(b) stable government and a slew of reforms undertaken by the government; and 
(c) improved visibility on the corporate earnings front.

The average downside in the Indian market is 16-17% in the past few wars, while the recovery was 23% in 3 months and 34% in 6 months. During the Russia-Ukraine war, NIFTY fell 13% from its peak of 18,600.

Q) Amid Gloom and Doom are there any money-making opportunities that investors can grab?

A) While there are huge expectations from 2022, as the economy has already witnessed an initial phase of recovery in 2021, an all-around recovery is yet to be seen in 2022.

Further, tailwinds in certain sectors should continue to prevail in 2022 as well. For instance, migration to cloud-based services by corporates owing to the hybrid culture has immensely benefited the IT companies in 2020 and 2021, which is evident from the record surge in new deal wins by several IT companies.

Moreover, India is at the cusp of a Capex revival, which should benefit the Capital Goods and Engineering sectors. The automobile is also another promising sector on the back of likely demand revival and better supply.

We believe that the next decade would witness a massive transformation on the EV front, and the first phase of inflexion point in EV adoption would start in 2022, with many EV makers and companies associated with the EV ecology plan commencing operations in the next 1-2 years.

Moreover, the government’s thrust on EV over IC would boost innovation, development and localization. This would also lead to the need for green energy, and this sector would continue to maintain a higher investor interest as ESG is gaining momentum across the investment community.

Q) Given the fact that the market is down more than 10% from highs – any mistakes (1-5) that investors should avoid making as volatility increases?

A) Indian equities fell 13% from their peak due to the ongoing Russia-Ukraine conflict, the anticipation of an aggressive rate hike by the Fed, firming crude oil prices, and relentless selling by FPIs.

Investors should avoid high PE stocks and focus on quality companies at discounted valuation rather than buying high growth stories at expensive valuation. Use current dips to build a long-term quality portfolio.

Q) How can investors look at asset allocation (considering he/she is in the age bracket of 30-45 years)? Is it time to reduce equity in the portfolio and increase the percentage of debt?

A) As the market is down 13% from the peak, one should increase the equity portion and reduce debt market investment for the age bracket of 30-45 years.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Mitul Shah, Head of Research – Institutional Desk at Reliance Securities Ltd expects FII inflows to return in 1HFY23, while the DII investments would continue in 2022, and equities would outperform with double-digit returns. Our year-end 2022 target for Nifty is 20,000 at 22x FY24E earnings.


Dalal Street Voice: Mitul Shah of Reliance Securities sees FII flows returning by 1HFY23; Nifty50 at 20,000 by December 2022

Santosh Meena, Head of Research, Swastika Investmart Ltd said that investors should start accumulating quality stocks amid prevailing pessimism in the market.

In an interview with Zeebiz's Kshitij Anand, Meena suggests a diversified approach with stocks from different sectors where Infosys from IT bank, SBI from banking space. Edited excerpts:

Q) Sensex, and Nifty50 closed with gains of over 2%. What led to the price action?

A) Markets were extremely oversold and there was selling exhaustion while some positive news on the Russia-Ukraine front, cool off in crude oil prices, the victory of BJP in four states led to a strong bounce back in the market.&nbsp; &nbsp;&nbsp;

Q) What is your view on Nifty and Nifty Bank for a holiday-shortened week?

A) Technically, Nifty witnessed a smart pullback from the 16700 level and witnessed bullish engulfing candlestick formation on the weekly chart that is a positive sign; however, 16800-17000 is a critical supply zone, because it is a cluster of 20 and 200-DMA.

Bulls must take Nifty above the 17000 level to come back aggressively in the game otherwise there is risk that bears may again become active where 16300-16250 will be immediate and critical support zone then 16000-15500 will be the next support area.

Bank Nifty also witnessed a smart pullback however 35500/36000/36500 are important resistance levels and it should cross 36500 level for any meaningful reversal.

On the downside, 34000 is an immediate support level while 33000-32500 is the next support area.

Q) Sectors like telecom, IT, realty rose over 2% each while power stocks saw mild selling pressure. What led to the price action, and will the momentum continue?

A) IT sector did well because it is considered as a defensive sector amid an uncertain environment whereas it has a tailwind of rupee weakness.

Similarly, telecom is among the least affected sector by geopolitical tension and inflation therefore we are seeing money flow towards IT, Telecom, and Pharma names.

The realty sector is a high beta space therefore it rallied along with recovery in the market while the overall outlook is positive for the real estate sector amid short-term challenges.

Q) We have seen some stability in the market in the week gone by – time to buy or investors should wait it out if someone has a time horizon of 1-3 years?

A) I believe we are in a structural bull market that is likely to continue, and the big wealth can be created in the Indian market in the next 3-4 years however elevated commodity prices are the biggest worries in the near term.

Investors should start accumulating quality stocks amid pessimism in the market. IT sector may continue to do well while capital goods, infrastructure, housing, financials are our preferred sectors for the long term.

Q) The big Fed meeting is also due in the coming week – what are your expectations and how should investors prepare for the event?

A) This US Fed meeting is going to be very important amid the hyperinflation situation and it is expected that at least 25 basis points rate hike will be seen while the possibility of 50 basis points rate hike can't be ruled out.

We are going to see high volatility in the coming week therefore conservative traders may step aside until the market digests the event and get a clear direction while aggressive traders play on both sides by respecting important technical levels.

Q) The recent strike on telegram channels from SEBI is a welcome step. Any advice you would like to give to traders if they base their trading strategy on social media tips?

A) The biggest challenge nowadays is burgeoning telegram channels and social media platforms for stock tips, big M2M screenshots to trap the traders at a time when there is a sharp surge in new retail investors in the market.

Traders should not be allured by such tips and screenshots because the market is not a place to make easy money and there is no free lunch in the market.

Traders should take help from the research team of their broker or any other professional investment advisor/research analyst.

Q) Please suggest 3-5 stocks for the next 2-3 weeks horizon which are looking attractive post recent drop?

A) I will suggest a diversified approach with stocks from different sectors where Infosys from IT bank, SBI from banking space.

Thermax from capital good space, Balrampur Chini from commodity space, and Reliance Industries are our preferred bets for the next couple of weeks.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

In an interview with Zeebiz's Kshitij Anand, Meena suggests a diversified approach with stocks from different sectors where Infosys from IT bank, SBI from banking space.&nbsp;


Infosys, SBI, Thermax among top 5 stocks to buy with 2-3 weeks horizon: Santosh Meena of Swastika Investmart

As tremors of the Russia-Ukraine war hit global equity markets including India, Debt focused Portfolio Management schemes (PMSs) outperformed benchmark indices by a wide margin. 
 
Scient Capital’s Aries Mid Yield PMS strategy gave 2.6 per cent return in February compared to 3.1 per cent fall seen in the Nifty50 in the same period, data from PMS Bazaar showed. 
 
Volatility was on the rise in February amid the Russia-Ukraine war which not only fuelled uncertainty it also led to boiling crude oil prices.

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Foreign institutional Investors have pulled out more than Rs 45000 cr from the cash segment of Indian equity markets in February. 
 
The Nifty50 scummed to selling pressure amid weak global cues and many stocks, especially in the small and&nbsp;midcap space fell in double digits. 
 
The S&amp;P BSE Smallcap index was down more than 8 per cent while the Nifty Midcap 100 index fell nearly 7 per cent in February. The S&amp;P BSE 500 index was down more than 4 per cent. 
 
Portfolio management services or PMS cater to high-net-worth investors and the professional fee charged by them is higher than regular mutual funds. 
 
However, it varies from scheme to scheme. As per SEBI norms, a PMS account can be opened and held, with a minimum corpus of Rs 50 lakhs.

[[{"fid":"177456","view_mode":"default","type":"media","link_text":null,"attributes":{"height":276,"width":846,"class":"media-element file-default"}}]]

As many as 80 per cent or 217 schemes out of 268 which have declared their monthly numbers for February underperformed Nifty50 in February, data from PMS Bazaar showed. 
 
Most of the Small &amp; midcap PMS strategies were under pressure. There are as many as 7 PMS strategies which fell more than 10 per cent in February. 
 
Centrum PMS’s Micro strategy fell 11.6 per cent, followed by Equitree Capital Advisors Emerging Opportunities fund was down 11.3 per cent, Green Portfolio Super 30 scheme was down 11.2 per cent, and Moat Financial Services Aggressive Leaders Fund closed with losses of 11.1 per cent, data from PMS Bazaar showed. 
 
What should investors do? 
 
There is one thing that experts advise investors not to do is ‘panic’. Don’t take a selling decision just because a certain stock that is in your portfolio is falling. 
 
If the company doesn’t have corporate governance issues chances are that a large part of the fall seen in the stock is due to external factors and the fundamentals still remain intact. 
 
“Investors should not sell any quality stocks in panic as they always come back and provide good exits. Similarly, avoid buying non-quality stocks which have been corrected optically,” Naveen Kulkarni, Chief Investment Officer, Axis Securities, said. 
 
“Lastly, invest gradually and use the market corrections. This is not the time to make hurried decisions,” he added. 
 
February turned out to be a month when Debt funds outperformed equity PMS schemes – should one consider increasing the percentage of debt in their portfolio? 
 
Yes, volatility is on the rise and with interest rates likely to head North debt funds could benefit, but experts still advise investors to remain overweight on equities as most quality stocks are available at attractive valuations if you have a long term view. 
 
“With inflation expectations now above 7%, debt instruments should not be considered as long-term investments. Allocating a portion of your liquid cash to short-term debt ETFs would be ideal as the investor can reallocate the capital easily to equities if market valuations seem further attractive,” Divam Sharma, Founder at Green Portfolio, SEBI Registered Portfolio Management Service Provider. 
 
“The goal of every investor is to protect their hard-earned capital above all else. Investments in real estate, commodities, or equities are the only asset classes that enable investors to hedge against inflation and grow their wealth in real terms,” he said. 
 
Sharma further added that allocating a higher percentage to equities with a time frame of 3-5 years would be ideal given where the Indian economy and corporate profit scenario are heading. 
 
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Scient Capital’s Aries Mid Yield PMS strategy&nbsp;gave 2.6 per cent return in February compared to 3.1 per cent fall seen in the Nifty50 in the same period, data from PMS Bazaar showed


Debt PMS strategy outperforms Nifty50 amid Russia-Ukraine war; 7 small & midcap themes fell over 10% in February

Indian market opened higher on Monday as benchmarks extended gains for the fifth straight session amid mixed global cues. There will also be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.&nbsp; 
&nbsp; 
We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:&nbsp; 
&nbsp; 
HDFC Bank: Buy| Target Rs 2025&nbsp; 
&nbsp; 
CLSA maintained a buy rating on HDFC Bank with a target price of Rs 2025 that translates into an upside of over 40 per cent from Rs 1397 recorded on 11 March.&nbsp; 
&nbsp; 
Commercial and rural a key growth engines for the bank. The market share and growth prospects remain strong in the SME space.&nbsp; 
&nbsp;&nbsp; 
Strong profitability with a good asset quality track record augers well for the private sector lender. RBI lifts ban related to Digital 2.0 launch which is positive.&nbsp; 
&nbsp; 
Escorts: Buy| Target Rs 2196&nbsp; 
&nbsp; 
CLSA initiated a buy on Escorts with a target price of Rs 2196 which translates into an upside of over 20 per cent from Rs 1818 recorded on 11 March.&nbsp; 
&nbsp; 
Escorts is a play on a recovery in the tractor cycle segment. The global investment bank expects strong growth (an 11% EPS Cagr in FY21-24) over the next 3 years, led by a revival in tractor volumes.&nbsp; 
&nbsp;&nbsp; 
We believe growth in construction and railways business which is not priced in Kubota investment to open multiple growths, said the note.&nbsp; 
&nbsp; 
IndusInd Bank: Overweight| Target Rs 1350&nbsp; 
&nbsp; 
JPMorgan maintained an overweight rating on IndusInd Bank with a target price of Rs 1350 that translates into an upside of nearly 50 per cent from Rs 902 recorded on 11 March.&nbsp; 
&nbsp; 
Growth will be a key factor to watch from hereon. The management gave a positive outlook on the loan growth.&nbsp; 
&nbsp;&nbsp; 
FY23 onwards will return to normalized credit cost of 130-15- bps. IndusInd Bank ROEs will reflate back to 15-16% levels from FY23 onwards, said the note.&nbsp; 
&nbsp;&nbsp; 
The valuations at 1.3X FY23 PBV are supportive.&nbsp; 
&nbsp; 
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)&nbsp;

Indian market opened higher on Monday as benchmarks extended gains for the fifth straight session amid mixed global cues.&nbsp;


Global View: HDFC Bank, Escorts and IndusInd Bank could give 20-50% return in next 12 months   

Indian market closed in the green on Friday for the fourth consecutive day in a row. The Nifty50 closed above 16600 levels. 
 
Sectorally healthcare, public sector, oil &amp; gas, and metal stocks saw buying interest while selling was seen in auto, telecom, and IT stocks. 
&nbsp;

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Stocks that were in focus include BSE which closed with losses of over 2 per cent, GNFC rallied over 12 per cent and Vadilal Industries rose over 3 per cent on Friday. 
 
Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today: 
 
BSE: Buy 
 
The stock has rallied over 40 per cent so far in this quarter. After breaching 2400 price with strong volumes, prices rose sharply. Post the breakout, the stock rallied over 15 per cent. &nbsp; 
 
On the daily and intraday time frame, the stock has formed a breakout continuation formation. The texture of the pattern suggests that the uptrend momentum will continue in the near term if the stock succeeds to trade above the 2550 level. 
 
For the swing traders now, 2550 would be the immediate support level. If the stock trades above the same, then we could expect the uptrend continuation wave up to 2900. Further upside may also continue which could lift the stock up to 3000. &nbsp; 
 
GNFC: Hold 
 
On March 11th, the stock made yet another all-time high of 715.75. The stock has already rallied by nearly 40 per cent so far in this month. 
 
The important point is that the stock not only surpassed its previous 52 week high of 577.90 but comfortably sustained above the same. &nbsp; 
 
On the daily and intraday charts, the stock is holding higher high and higher low series formation which is broadly positive for GNFC Ltd. &nbsp; 
 
However, on a short-term time frame, momentum indicators indicate that the stock is in an overbought zone and there are high chances of a quick short-term price correction. 
 
If the stock starts trading below 660 then a short-term correction cannot be ruled out. For the next few trading session, 660 would be the trend decider level for the bulls. 
 
If it manages to hold above Rs 660 then we could expect a continuation of the uptrend towards 735-775. On the flip side, a dismissal of 660 could possibly trigger quick short-term correction up to 620-602.

&nbsp;

Vadilal Industries: Hold 
 
On the daily and weekly charts, the stock is making a higher bottom formation which is broadly positive. But, post strong breakout, the stock is now hovering between the 1200 to 1450 price range. 
 
Currently, the stock is witnessing a non-directional activity. Traders are waiting for either side breakout. For the bulls, 1465 would be the important breakout level to watch. 
 
If the stock manages to close above the same, then we can expect a quick uptrend rally towards 1525-1575. On the flip side, a close below 1300 may increase further weakness up to 1250-1200. 
 
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Indian market closed in the green on Friday for the fourth consecutive day in a row. The Nifty50 closed above 16600 levels.
&nbsp;


Buy, Sell or Hold: What should investors do with BSE, GNFC and Vadilal Industries?

Vijay Dhanotiya, Lead of Technical Research, CapitalVia Global Research Limited said that he expects the Nifty to trade in the range of 16400 &amp; 16800. If it breaches the above level of 16800, we can expect the market to rally to the level of 17000.

In an interview with Zeebiz's Kshitij Anand, Dhanotiya feels that the US Fed meeting this week will be a very important one as it would give a direction globally whether there will be an increase in interest rates or not. Edited excerpts:

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Q) Sensex, and Nifty50 closed with gains of over 2%. What led to the price action?

A) Sensex and Nifty 50 closed with gains as the geopolitical tensions decrease after Ukraine has pulled back from joining NATO which led to positive sentiments amongst the traders and hence, we saw a swift recovery in the market.

Q) What is your view on Nifty and Nifty Bank for a holiday-shortened week?

A) We have seen a very quick recovery in Nifty and Nifty Bank, and we expect that it will be volatile for the next week in a small range.

We expect Nifty to trade in the range of 16400 &amp; 16800. If it breaches the above level of 16800, we can expect the market to rally to the level of 17000.

For Bank Nifty 34000 is an important support level and we expect the market to trade in a range of 34000 and 35500.

Q) Sectorally telecom, IT, realty rose over 2% each while power stocks saw mild selling pressure. What led to the price action, and will the momentum continue?

A) Telecom, IT, and Realty stocks had seen a big correction in the recent past and in the recovery, we have seen that these sectors were able to outperform in the market and this rally can continue with the positive momentum in the market.

Q) We have seen some stability in the market in the week gone by – time to buy or investors should wait it out if someone has a time horizon of 1-3 years?

A) We have seen stability in the market, and we can expect the market to trade positively from here, but a small correction can be expected with the war still going on.

Inflation is also one of the reasons for worry which can led to a correction in the market, but with a horizon of 1-3 years investors can start accumulating fundamentally strong stocks.

Q) The big Fed meeting is also due in the coming week – what are your expectations and how should investors prepare for the event?

A) The inflation worries are high globally and with already high inflation the geopolitical tensions have further increased the worry amongst the investors.

The US Fed meeting this week will be a very important one as it would give a direction globally whether there will be an increase in interest rates or not.

We can expect an increase in the interest which can affect the Banks and NBFCs positively.

Q) The recent strike on telegram channels from SEBI is a welcome step. Any advise you would like to give to traders if they base their trading strategy on social media tips?

A) The move on telegram by SEBI is a very welcome move as there were a lot of scams going on social media.

We would advise traders to rely on the SEBI registered financial advisors for any query related to financial markets and not rely on random social media tips.

Q) Please suggest 3-5 stocks for teh next 3-4 weeks which are looking attractive post recent drop?

A) Asian Paint, TCS, and HDFC Banks have corrected about 20 % and more from their high which provides investors with lucrative investment opportunities.

These are fundamentally strong stocks that can provide good returns in the market with the recovery.&nbsp;

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

In an interview with Zeebiz's Kshitij Anand, Dhanotiya feels that the US Fed meeting this week will be a very important one as it would give a direction globally whether there will be an increase in interest rates or not.


Nifty to trade in 16400 & 16800 range this week; US Fed meet in focus: Vijay Dhanotiya of CapitalVia Global Research

S&amp;P BSE Small cap and mid cap indices have declined nearly 8% and 11% respectively in the last two months as on March 11. The former corrected by over 5.5% and the latter dipped by more than 4% in the last one month alone. On Friday, BSE Small Cap index gained over 243 points to settle at&nbsp;27,141.43, while the Nifty Midcap 100 was up by almost 100 points to&nbsp;23,309.95. &nbsp;

In 2021, BSE midcap and small cap indices outperformed the benchmarks with gains of around 38% and 61% respectively. In CY 2021, Barometer Nifty50 and the S&amp;P BSE Sensex had clocked around 21% and 24% respectively.

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Despite massive correction in midcap and small indices this year, expert is of the view that these stocks still offer good value. &nbsp;

"Russia-Ukraine crisis only&nbsp;poses a near-term headwind"

"The conflict between Russia and Ukraine is only a short-term issue. There is good scope to invest on a bottoms-up basis in mid-cap &amp; small-cap segments," says Sachin Shah, Fund Manager, Emkay Investment Managers Limited. &nbsp;

He was also bullish on Pharma, IT Engg R&amp;D, Auto, Infra, Travel and healthcare sectors. &nbsp;

"In the current calendar year 2022 (last two months), BSE Mid Cap Index is down by 8% and BSE Small Cap Index is down by 11%. What is important is that both the indices on a 1-year basis are still up by 15% &amp; 31% respectively. In fact, BSE Small-Cap index continues to outperform the large-cap indices Sensex &amp; Nifty," said Shah.

Looking at stock-price specific corrections, there are many-many stocks, which have corrected by more than 25%-50% from their peak levels over the last 4-5 months, underlines Emkay Investment fund manager. &nbsp;

"The conflict between Russia and Ukraine poses a near-term headwind for domestic equity markets and there is always good scope of investing on a bottoms-up basis in Mid-cap &amp; Small-cap segments," he adds.&nbsp;

No major dent to markets from FII outflows

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services is of the view that financial stocks too offers good side from current levels as FIIs relentless selling have failed to impact market much.

&nbsp;"Sustained FIIs selling has failed to dent market much. Despite FPIs selling IT equity worth Rs 10984 crore in February, however, IT index has outperformed so far this month, he said. &nbsp;

Vijayakumar is of the view that this trend is likely in financials too, where FPIs have been major sellers since last October. "Investors can use the present weakness in markets to accumulate high quality financials," he added. &nbsp;

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

In 2021, BSE midcap and small cap indices outperformed the benchmarks with gains of around 38% and 61% respectively. In CY 2021, Barometer Nifty50 and the S&amp;P BSE Sensex had clocked around 21% and 24% respectively.


Smallcap, midcap & financial stocks still offer good scope for investors to buy on bottoms-up basis, say experts

Indian market closed in the green for the third consecutive day in a row on Thursday following positive global cues. Benchmark indices closed&nbsp;with&nbsp;gains of more than 1 per cent pushing both Sensex,&nbsp;and&nbsp;Nifty50 above crucial resistance levels.

Sectorally,&nbsp;buying was seen in FMCG, realty, metals, power, auto&nbsp;and&nbsp;finance indices. The S&amp;P BSE Mid-cap&nbsp;and&nbsp;Small-cap indices also closed&nbsp;with&nbsp;gains of over 1 per cent each.

Stocks that were in focus include&nbsp;IndusInd&nbsp;Bank&nbsp;which closed 3 per cent higher,&nbsp;Phoenix&nbsp;Mills&nbsp;rallied more than 3 per cent,&nbsp;and&nbsp;HOEC&nbsp;closed&nbsp;with&nbsp;gains of over 9 per cent on Thursday.

Here's&nbsp;what&nbsp;Mazhar Mohammad, Chief Strategist – Technical Research&nbsp;and&nbsp;Trading Advisory, Chartviewindia.in, recommends&nbsp;investors&nbsp;should&nbsp;do&nbsp;with&nbsp;these stocks when the market resumes trading today:

IndusInd&nbsp;Bank:&nbsp;Buy&nbsp;above Rs 934

Despite the gap-up opening, this counter registered an indecisive formation. Hence, going forward, it remains critical for this counter to sustain above the bullish gap zone of 890 – 880 levels registered in the last trading session.

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On the upsides, 934 seems to be the immediate hurdle. Once it manages to push through the said hurdle, 990, is quite possible.

Therefore, short term traders&nbsp;should&nbsp;buy&nbsp;into this counter only above 934 whereas existing&nbsp;investors&nbsp;should&nbsp;hold&nbsp;the counter&nbsp;with&nbsp;a stop below 880 levels.&nbsp;&nbsp;

Phoenix&nbsp;Mills:&nbsp;Hold

This counter is in a multi-week consolidation zone between 1040&nbsp;and&nbsp;890 levels. On multiple occasions in the past, it bounced from the lower end of the 890 levels.

Hence, sustaining above that, it&nbsp;should&nbsp;ideally head towards the upper band of the consolidation zone.

However, for the time being,&nbsp;investors&nbsp;who own this counter&nbsp;should&nbsp;hold&nbsp;with&nbsp;a stop below 900 on a closing basis&nbsp;and&nbsp;look for a target of 990 whereas fresh&nbsp;buying&nbsp;should&nbsp;be considered on dips.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Hind Oil Exploration:&nbsp;Hold

A strong up move of the last 4 trading sessions is hinting that this counter embarked on a sustained pullback swing.

Interestingly, sharp price appreciation seen in the last trading sessions on the back of relatively higher volumes is acting as a durable bottom at recent lows.

Hence, any dip can be a&nbsp;buying opportunity. For time being&nbsp;investors&nbsp;who bought at lower levels can&nbsp;hold&nbsp;with&nbsp;a stop below 279 whereas fresh&nbsp;buying can be considered on a dip into the zone of 295 – 290 levels.

Investors&nbsp;can look for an initial target of 327&nbsp;and&nbsp;beyond that, a higher target of 358 cannot be ruled out.&nbsp;&nbsp;&nbsp;

Analyst Disclosure: Neither I nor my clients own any of the scrips discussed above.&nbsp;&nbsp;&nbsp;

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult&nbsp;with&nbsp;their investment advisers before making any financial decision.)

Indian market closed in the green for the third consecutive day in a row on Thursday following positive global cues.&nbsp;


Buy, Sell or Hold: What should investors do with IndusInd Bank, Phoenix Mills and HOEC?

Leading security company in India SIS Ltd rose more than 10 per cent in the last one year compared to 10 per cent rise seen in the Nifty50. Technical indicators suggests that a long-term trend is emerging and hence, traders can look at buying the dip.

The company with a market capitalization of more than Rs 7000 cr hit a 52-week high of Rs 559 on 8 February 2022 but the trend turned sideways amid negative global cues.

Technically, after a sharp downward trend seen in the stock price - SIS Ltd seems to have completed after it witnessed an upside bounce from the lows in this week.

The stock rallied more than 6 per cent in a week compared to a near 1 per cent rise seen in the Nifty50 in the same period.

The stock reclaimed its crucial long-term moving average of 200-DMA placed at 470 on 9 March which suggests that bulls have started to take control. However, it is still trading below 50, and 30-DMA.

The stock has been making a higher top and higher bottom formations which is positive for the bulls. If the momentum sustains, the stock could well hit 490-525 which translates into an upside of about 10 per cent from Rs 474 recorded on 9 March, suggest experts.

&nbsp;

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&nbsp;

“We observe a formation of higher tops and higher bottoms with larger swing moves (indicative of upper and lower trend lines),” Nagaraj S. Shetti of HDFC Securities said in a note.

Presently, the stock price is making an attempt of another higher bottom at the support of up sloping trend line at Rs 428 in last week.

“This is a positive indication, and one may expect further upside in the stock price ahead. The volume has started to pick up in this week and weekly 14 period RSI shows turn up from near 45 levels,” he said.

This could indicate a further strengthening of upside momentum in the stock price ahead. Shetti further added that the overall chart pattern of SIS indicates a long trading opportunity.

One may look to create positional long with a target price of Rs 490-525, and a stop loss can be kept at Rs 424 with a time horizon of 3 months, recommends Shetti.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Leading security company in India SIS Ltd rose more than 10 per cent in the last one year compared to 10 per cent rise seen in the Nifty50. Technical indicators suggests that a long-term trend is emerging and hence, traders can look at buying the dip.


Technical Check: SIS back above 200-DMA but technical check suggests long trading opportunity

Akhil Chaturvedi, Chief Business Officer at Motilal Oswal Asset Management said that money-making opportunities generally come in gloom and doom, those who buy on dips generally perform better than those who buy in tail winded markets.

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In an interview with Zeebiz's Kshitij Anand, Chaturvedi feels that India has the potential to do achieve double-digit nominal growth leading to strong earnings growth translating in positive returns from the markets. Edited excerpts:

Q) Bulls have taken a back seat as bears take control. The benchmark indices have been pushed below crucial support levels. What is your take on markets?

A) This is once again a black swan event, out of nowhere we are in a war zone between two countries and on being largest commodity export country which is Russia.

The sanctions imposed by the west have caused commodity prices to soar including that of crude oil and this pessimism is being extrapolated to a doomsday scenario.

In such events, markets do react negatively, and as the situation reverses then markets are also likely surprised by the positive side.

Q) Crude oil boils to $130. What is the kind of impact you see on markets, economy and India Inc.?

A) Crude did touch $130 briefly on 7th March and then cooled off to $125 level very quickly. If it does remain at these levels then there would be a serious issue for oil-importing countries like India and China, whether it would mean more inflation, widening of CAD, depreciation of the currency, and finally all leading to slowing down of the economy.

However, I do feel the world including western countries cannot tolerate such high crude and gas prices and certainly, these would cool off in due course of time.

Q) Will rising crude oil impact earnings growth in the March quarter?

A) The impact of high crude oil prices will be felt with lag and not necessarily in arch quarter. The pain of high cure oil prices is expected to be seen in June or September quarter.

Q) What is the kind of impact you see on markets as well as reforms post state election results?

A) Difficult to comment in the short term, but our outlook on Indian markets from 3-5 years perspective is very positive.

We feel India has the potential to achieve double-digit nominal growth leading to strong earnings growth translating into positive returns from the markets.

Q) There is no stopping of FIIs as they pull out more than Rs 18000 cr from the cash segment of Indian equity markets in just 3 sessions. What is the trend you foresee for FIIs amid US Fed rate hike possibility and Russia-Ukraine war?

A) FII’s according to me will come back to India as it offers a unique growth opportunity to FII’s and the moment dust will settle we will see a reversal of flows as well.

Q) Are there any money-making opportunities that investors can grab amid the current gloom and doom ?

A) Money-making opportunities generally come in gloom and doom, those who buy on dips generally perform better than those who buy in tail-winded markets.

The ongoing correction had led to valuation correcting by 30% hence always a good time to grab.

Q) Given the fact that market is down more than 10% from highs – any mistakes (1-5) that investors should avoid making as volatility increases?

A)

-&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Don’t exit now 
-&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Don’t see portfolio everyday 
-&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Do not react to news items

Q) How can investors look at asset allocation (considering he/she is in the age bracket of 30-45 years). Is it time to reduce equity in the portfolio and increase the percentage of debt?

A) Thumb rule is 100- AGE should be equity allocation, follow that and all should be ok!

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Akhil Chaturvedi, Chief Business Officer at Motilal Oswal Asset Management said that money-making opportunities generally come in gloom and doom, those who buy on dips generally perform better than those who buy in tail winded markets.

&nbsp;


Dalal Street Voice: Stay put! Money-making opportunities generally arise in gloom and doom scenarios: Akhil Chaturvedi of Motilal Oswal

Indian market closed higher for the second consecutive day in a row on Wednesday following positive global cues. The S&amp;P BSE Sensex rallied more than 1200 points, while the Nifty50 closed above 16300 levels.

Sectorally, buying was seen in energy, realty, auto, consumer discretionary, industrials while selling was seen in metals, and power stocks.

Stocks that were in focus include Jubilant Ingrevia, which rose over 10 per cent, and Bajaj Electricals that was down more than 5 per cent on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

 
Jubilant Ingrevia: Buy

The counter took support at 400 following a meaningful correction and then witnessed a bullish Morning Star candlestick formation on the daily chart, therefore we can expect a bullish reversal in it.

On the upside, 520 will be the immediate resistance level, while 600 will be the next important hurdle. Momentum indicator RSI is witnessing positive crossover with positive divergence.

Bajaj Electricals: Hold

The counter is forming a triangle formation. It has retested its previous breakout level after hitting a fresh 52-week high of Rs. 1588.

On the upside, 1200 is an immediate resistance area; above this, we can expect a run-up towards 1400+ levels in the near term. On the downside, Rs. 920 is major support at any correction.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Indian market closed higher for the second consecutive day in a row on Wednesday following positive global cues. The S&amp;P BSE Sensex rallied more than 1200 points, while the Nifty50 closed above 16300 levels.


Buy, Sell or Hold: What should investors do with Jubilant Ingrevia and Bajaj Electricals?

Indian market closed higher on Tuesday after four consecutive days of decline. The S&amp;P BSE Sensex rallied nearly 600 points while the Nifty50 reclaimed 16000 levels.

Sectorally, buying was seen in realty, IT, healthcare, capital goods, and telecom stocks while selling was seen in metals&nbsp;and oil &amp; gas stocks.

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Stocks that were in focus include IGL which closed with gains of over 9 per cent, Motherson Sumi closed flat with a loss of nearly 1 per cent, and Mahanagar Gas rallied over 6 per cent on Tuesday.

Here's what Vijay Dhanotiya Lead of Technical Research, CapitalVia Global Research Limited, recommends investors should do with these stocks when the market resumes trading today: 
 
IGL: Buy 
 
IGL has reversed from the previous breakout levels and has been following a positive momentum after the reversal. We recommend a buy on the stock above 376 with a Target of 500 and Stop Loss of 275. 
 
Motherson Sumi: Avoid 
 
Motherson Sumi has been trading below the levels of 200-Days EMA and is near to the 52-week lower levels. We do not recommend buying Motherson Sumi at these levels. 
 
Mahanagar Gas Ltd: Buy 
 
MGL has reversed from near the previous support levels and has been following a positive momentum after the reversal. We recommend a buy on the stock above Rs 775 with a target of Rs 1,100 and a stop loss of Rs 650. 
 
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

&nbsp;

Indian market closed higher on Tuesday after four consecutive days of decline.&nbsp;


Buy, Sell or Hold: What should investors do with IGL, Motherson Sumi and Mahanagar Gas?

As the Russia-Ukraine war is intensifying, a domino effect&nbsp;on&nbsp;equity&nbsp;markets, currencies, commodities is getting created across the globe. Crude&nbsp;oil has USD 130 a barrel, hitting a 13-year high and leading to a vertical drop in Indian equity&nbsp;markets. 
 
The S&amp;P BSE Sensex plunged by about 1500 points while the Nifty50 closed below 15,900 – a level last seen in August 2021. &nbsp;

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A rise in&nbsp;crude&nbsp;oil&nbsp;prices will lead to a rapid rise in inflation&nbsp;and&nbsp;could force central bankers to raise rates earlier than expected. It will hurt the&nbsp;economy&nbsp;as well as strain the margin&nbsp;of&nbsp;companies where&nbsp;crude&nbsp;is a raw material. 
 
Global&nbsp;oil&nbsp;prices have spiked more than 60% since the start&nbsp;of&nbsp;2022, along&nbsp;with&nbsp;other commodities, raising concerns about world economic growth&nbsp;and&nbsp;stagflation, said a Reuters report. 
 
Oil&nbsp;prices soared to their highest since 2008&nbsp;on&nbsp;Monday, after the U.S.&nbsp;and&nbsp;European allies explored a Russian&nbsp;oil&nbsp;import ban, while delays in the potential return&nbsp;of&nbsp;Iranian&nbsp;crude&nbsp;to global&nbsp;markets&nbsp;increased supply fears, it said. 
 
“India imports more than two-thirds&nbsp;of&nbsp;its&nbsp;oil&nbsp;requirements,&nbsp;and&nbsp;higher prices push up the country's trade&nbsp;and&nbsp;current account deficit while also hurting the&nbsp;rupee&nbsp;and&nbsp;fuelling inflation,” Vineet Bagri, Managing Partner- TrustPlutus Wealth, said. 
 
Experts decode how higher&nbsp;crude&nbsp;oil&nbsp;prices will&nbsp;impact&nbsp;markets,&nbsp;economy,&nbsp;and&nbsp;rupee&nbsp;in the near to medium term: 
 
Impact&nbsp;on&nbsp;Markets: 
 
Indian market is already down by about 15 per cent from recent highs,&nbsp;and&nbsp;if&nbsp;crude&nbsp;oil&nbsp;sustains above $120-130 levels, then this correction could well stretch towards 20 per cent, suggest experts. 
 
The Nifty50 is down by about 15 per cent from the recent high&nbsp;of&nbsp;18,604 recorded in October. 
 
Markets,&nbsp;economy,&nbsp;and&nbsp;rupee&nbsp;are interlinked&nbsp;and&nbsp;any adverse effect&nbsp;on&nbsp;any&nbsp;one&nbsp;of&nbsp;them will result in adverse&nbsp;impact&nbsp;on&nbsp;all three components. 
 
“Higher&nbsp;crude&nbsp;oil&nbsp;prices cause a higher current account deficit&nbsp;and&nbsp;weak currency while inflation is a major headwind world is already facing,” Parth Nyati, Founder, Tradingo, said. 
 
“Higher commodity prices are leading to sharp margin pressure&nbsp;on&nbsp;Indian Inc therefore we are seeing a sharp fall in the stock market. Historically, the Indian market witnessed 10-20% correction whenever&nbsp;crude&nbsp;oil&nbsp;prices surged furiously&nbsp;and&nbsp;our market already corrected more than 15% from its all-time high,” he said. 
 
The market has already corrected significantly,&nbsp;and&nbsp;it may see a further correction if things don’t start cooling&nbsp;off&nbsp;on&nbsp;the geopolitical front. 
 
Impact&nbsp;on&nbsp;Economy: 
 
Crude&nbsp;at $130 a barrel will have an adverse&nbsp;impact&nbsp;on&nbsp;the Indian&nbsp;economy&nbsp;which imports more than 2/3rd&nbsp;of&nbsp;its requirement. Some economists estimate that a prolonged strength in&nbsp;crude&nbsp;could even lead to a rise in the current account deficit&nbsp;and&nbsp;a downgrade&nbsp;of&nbsp;GDP estimates. 
 
Oil&nbsp;prices soared, momentarily reaching $139 per barrel, when the United States announced it was considering a ban&nbsp;on&nbsp;Russian&nbsp;oil&nbsp;imports. 
 
“The&nbsp;impact&nbsp;on&nbsp;commodities, particularly energy, is the key source&nbsp;of&nbsp;concern for the Indian&nbsp;economy. Rising petroleum prices inevitably lead to a depreciation&nbsp;of&nbsp;the&nbsp;rupee, an increase in inflation&nbsp;and&nbsp;the budget deficit,&nbsp;and&nbsp;a slowing&nbsp;of&nbsp;GDP growth,” Kshitij Purohit, Lead Commodities&amp; Currency at CapitalVia Global Research, said. 
 
“A 10% increase in petroleum prices is predicted to lower GDP growth by 20 basis points, increase inflation by 40 basis points,&nbsp;and&nbsp;worsen the current account deficit,” he added.&nbsp; 
 
ICRA expects the Indian current account deficit to widen to 3.2%&nbsp;of&nbsp;GDP in FY2023 if the&nbsp;crude&nbsp;oil&nbsp;price averages US$130/bbl, crossing 3% for the first time in a decade. 
 
“Moreover, the 10-year G-sec yield is likely to range between 7.0-7.4% in H1 FY2023,&nbsp;with&nbsp;the looming increase in supply. We now see large downside risks to our FY2023 GDP growth forecast&nbsp;of&nbsp;8.0%,&nbsp;with&nbsp;higher commodity prices set to decimate margins,” added the report. 
 
Impact&nbsp;on&nbsp;Rupee: 
 
The&nbsp;rupee&nbsp;tanked 84 paise to close at its lifetime low&nbsp;of&nbsp;77.01 (provisional) against the US dollar&nbsp;on&nbsp;Monday as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to safe-haven assets, said a PTI report. 
 
On&nbsp;Friday, the&nbsp;rupee&nbsp;fell by 23 paise to close at 76.17 -- its lowest closing level since December 15, 2021. Experts see the weakness to continue in the near term. 
 
“The fall in&nbsp;rupee&nbsp;has been rapid in last&nbsp;one week as the&nbsp;Crude&nbsp;price saw a rise&nbsp;of&nbsp;$30 plus in March month itself hence&nbsp;rupee&nbsp;has seen rapid fall below 77.00 from 75.50 in March already,” Jateen Trivedi, Senior Research Analyst at LKP Securities, said. 
 
“The outlook remains weak for the&nbsp;rupee&nbsp;till the time&nbsp;Crude&nbsp;price stays above $105 hence opening weakness towards 78 in the near term. If the&nbsp;Crude&nbsp;prices start crossing $130 then the&nbsp;rupee&nbsp;can even touch $78.50 in a very quick time,” he said.&nbsp; 
 
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult&nbsp;with&nbsp;their investment advisers before making any financial decision.)

As the Russia-Ukraine war is intensifying, a domino effect&nbsp;on&nbsp;equity&nbsp;markets, currencies, commodities is getting created across the globe. Crude&nbsp;oil has&nbsp;USD 130 a barrel, hitting a 13-year high and leading to a vertical drop in Indian equity&nbsp;markets


Tread with caution! Impact of crude oil @ $130 on markets, economy and rupee

Indian market plunged on Monday with BSE Sensex and Nifty50 falling over 2.5 per cent each amid a continuous surge in the crude oil prices as well as rising geopolitical concerns. The S&amp;P BSE Sensex plunged nearly 1500 points while the Nifty50 closed below 15900 levels.

Sectoral selling pressure was seen in realty, banks, auto, and capital goods while some buying was seen in metals, telecom as well as oil &amp; gas.

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Stocks that were in focus include ONGC which closed with gains of over 13 per cent, GMDC also rose over 3 per cent and Indigo Paints pared plunged nearly 9 per cent on Monday.

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stoc

ONGC: Recommendation: Buy on dips | Target: Rs230 | Time Duration: 1-2 Months

On 7 March 2022, the stock managed to surpass its medium-term supply zone, which was placed around Rs 175-180 and rose to a new 52-week high of Rs189.80.

Its major moving averages are sloping upwards on medium-term timeframe charts, while its key technical indicators are positively poised.

This could lead the stock towards Rs210 initially and Rs230 subsequently.

In case of decline, its 20-week EMA will continue to work as a strong reversal point, which is placed at Rs158.

GMDC: Recommendation: Buy on dips | Target: Rs260 | Time Duration: 3-4 Months

Since December 2021, the stock witnessed an exponential rise, as it jumped from Rs 65 and rose to Rs 173.

The stock is near its long-term supply zone, which is placed around Rs 180-187.

The key technical indicators are positively poised but stuck around their overbought zone.

Hence, higher level profit booking cannot be ruled out before a fresh up-move starts.

Profit booking could drag the stock towards the Rs 145-125 zone, which will provide better risk-reward for a fresh long trade.

However, a stable move above that supply zone (Rs180-187) could lead the stock towards Rs222 initially and Rs260 subsequently.

Indigo Paints: Recommendation: Sell on rise | Target: Rs 1,080 | Time Duration: 1-2 Months

After a stellar listing, the stock witnessed profit booking and despite a consolidation, failed to resume its up-move.

Since August 2021, the stock ended the month on a negative note and so far reported a fall of 70%.

Its major technical indicators tested their oversold zone on short-term as well as medium-term timeframe charts.

Hence, a pullback cannot be ruled out before its southward journey resumes.

A pullback could take the stock towards Rs1,800 and Rs1,900, which will provide a better risk-reward for a fresh short trade.

In case selling pressure intensifies, this could drag the stock towards Rs1,330 initially and Rs1,080 subsequently.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Indian market plunged on Monday with BSE Sensex and Nifty50 falling over 2.5 per cent each amid a continuous surge in the crude oil prices as well as rising geopolitical concerns. The S&amp;P BSE Sensex plunged nearly 1500 points while the Nifty50 closed below 15900 levels.


Kshitij Anand