stock market today After weak global cues on the ‘imminent’ Russian invasion of Ukraine, the Indian stock market was badly hit today. NSE’s Nifty has broken close to 500 points while BSE Sensex has lost around 1650 points in morning trade. According to stock market analysts, Nifty has slipped below its 200-DMA, which may lead to further weakness at 16,000 levels while 16,400 is intermediate support level. He 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 also provide opportunities for smart investors as it provides an opportunity to acquire quality stocks at reasonable prices.
Speaking on strategies for investors in such falling markets; Partha Nyati, Founder, Tradingo said, “We are witnessing the first meaningful correction in the market after a strong performance in 2021. There was to be a correction where geopolitical tensions became the pretext for this correction. Inflation and rising interest rates are major concerns. Inflation risks to equity markets and geopolitical tensions are rising as energy prices rise. Realistically, such geopolitical issues provide a good buying opportunity for long-term investors and we are a Structural bull runs are in the works that are likely to continue over the next few years where intermediate reforms will be part of this journey.”
Partha Nyati of Tradingo further added, “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 are the best for investors. Should be on the radar.”
Partha resonated with Nyati’s thoughts; VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Investors should wait and watch the situation unfold before taking any major commitments. Buying should be limited to stocks and segments only, which are highly valued or There is good earnings visibility.”
Advising positional investors to buy IT stocks in this weak market, VK Vijayakumar of Geojit Financial Services said, “IT, though highly valued, is a sector whose prospects are continuously improving. There are examples of promoters buying shares. This is a sign of better-than-expected results from the sector. Investors can use sharp market corrections to gradually accumulate high quality stocks in IT.”
Suggesting long term investors to always look for green stocks in this falling market; Saurabh Jain, Vice President-Research, SMC Global Securities said, “Apart from sectors like banks, real estate and capital goods, one can also consider buying quality stocks like Reliance shares and Bharti Airtel shares in this weak market “
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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