Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in ICICI Bank and Mahindra Kotak Bank
Anil Singhvi, Managing Editor, Zee Business, says, he thinks 13,300-13,000 is a big support zone on Nifty and maximum correction can happen in this zone. On the upper side, profit booking will be seen in the range of 15,000-15,200.
Anil Singhvi, Managing Editor, Zee Business, says, he thinks 13,300-13,000 is a big support zone on Nifty and maximum correction can happen in this zone. On the upper side, profit booking will be seen in the range of 15,000-15,200. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi suggested people can invest in ICICI Bank and Mahindra Kotak Bank, which have corrected well in this fall.
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Starting the radio chat, RJ Salil said, there was a fall in the stock market; meanwhile, there was a jump-up when talks related to the Sputnik vaccine came. How people will suffer from the stock market this time, as compared to the last year when it fell all of sudden as nothing was known nor there was any vaccine? Many people are saying that everything will be closed if the lockdown happens once again? To which Mr Singhvi said, it is right that there is a big difference between last time and this time. Last time, it was not known how big it is, when the vaccine will be available and when things will improve.
This is why there was a sudden fall in the market. But this time, there is confidence in the market that we will deal with it, soon. So, there will be a slight correction due to the surge in corona cases and it is visible. But there is no possibility that there can be a huge fall. As per my understanding, 13,300-13,000 is a big support zone on Nifty and maximum correction can happen in this zone. On the upper side, profit booking will be seen in the range of 15,000-15,200. So, the market will remain range-bound. Until the surge in corona cases is brought under control, the upside is limited but frequent purchases will happen at the lower levels. So, there will be opportunities on both sides whenever some bad news comes there is a chance to buy.
In his next question, RJ Salil said, Q4FY21 results are being announced and as you have said earlier that a huge business has happened in the last six months, which means the coming results will be good but there will be a fall in the coming three months as there will be problems related to manufacturing in this period. So, should we expect more from the Q4FY21 results, which can act as an ointment in the market? Mr Singhvi in his reply said that Q4FY21 results will not just be good but will be very good and fabulous. Just we have to see the management’s commentary about the next 3-6 months after the results are announced. If they feel, the surge in corona cases will not have a significant impact on their business then the market will start trading on the next year’s earning and provide more upside. Otherwise, your earnings will return on track after a dip of a month or so. So, I do not think that the market will be disappointed in terms of results and will remain confident and you will get guidance for good results for the next year as well.
Continuing the chat further, RJ Salil asked the name of two stocks, where investors – especially those who missed an opportunity in the last few months - can look upon, although there has been a fall in almost every stock. Mr Singhi said, of course, and you should buy some well-corrected stocks, especially banks that were leading the way in the fall. In fact, banks and the NBFC sector will remain under pressure until the cases of corona are not brought under a control. Meanwhile, there is a great chance to buy some good banks and they are ICICI Bank and Kotak Mahindra Bank. Focus on these two shares on the fall. You have to buy only good quality stocks that have weakened.
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