Stock market today: Following weak global cues on ‘imminent’ Russian invasion of Ukraine, Indian stock market has been hit severely today. NSE Nifty is down near 500 points whereas BSE Sensex has tumbled around 1650 points in early morning deal. According to stock market experts, Nifty has slipped below its 200-DMA which may lead to further weakness towards the 16,000 level while 16,400 is an intermediate support level. They said that Bank Nifty has also slipped below its 200-DMA where 35,500 is the next important support level while 34000 is the next major support. However, falling markets provide opportunity for smart investors as well because it provides an opportunity to get quality stocks at reasonable prices.
Speaking on the strategy for investors in such falling markets; Parth Nyati, Founder at Tradingo said, “We are seeing the first meaningful correction in the market after a strong performance in 2021. A correction was due where geopolitical tension has become an excuse for this correction. Inflation and rising interest rates are the major concerns for equity markets and geopolitical tension is increasing the risk of inflation as energy prices are rising. Anecdotally, such kinds of geopolitical issues provide a good buying opportunity for the long-term investors and we are in a structural bull run that is likely to continue for the next couple of years where intermediate corrections will be part of this journey.”
Parth Nyati of Tradingo went on to add, “Long-term investors should not panic and look for buying opportunities from lower levels where the domestic economy facing sectors like capital goods, infrastructure, real estate, financials should be on investors’ radar.”
Echoing with Parth Nyati’s views; VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “Investors should wait and watch the unfolding situation before taking any major commitments. Buying should be confined to stocks and segments, which are fairly valued or have good earnings visibility.”
Advising positional investors to look at buying IT stocks in this weak market, VK Vijayakumar of Geojit Financial Services said, “IT, though highly valued, is a sector whose prospects are steadily improving. There are instances of promoters buying stocks of IT companies. This is an indication of better-than-expected results from the sector. Investors can use sharp market corrections to slowly accumulate high quality stocks in IT.”
Suggesting long-term investors to look at ever green stocks in this falling market; Saurabh Jain, Vice President — Research at SMC Global Securities said, “Other than sectors like bank, real estate and capital goods, one can look at buying quality stocks like Reliance shares and Bharti Airtel shares in this weaker markets.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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