Market Overview
The first trading day of the week has brought a wave of profit booking across the Indian stock market, with Nifty slipping below the crucial 26,000 level. The Bank Nifty is facing the steepest decline, reflecting a broader sentiment affecting midcap and smallcap stocks as well. Notably, the INDIA VIX has surged nearly 7%, indicating increased market volatility and uncertainty.
Analysis reveals that the sectors experiencing the most pressure include real estate, automobiles, non-banking financial companies (NBFCs), government banks, and capital goods, with each sector registering a decline of 1% to 1.5%. In the capital goods sector, BHEL has emerged as the top loser in futures, witnessing a significant drop of 4%. In contrast, market leaders such as JSW Steel, NTPC, Hindalco, Tata Steel, and BPCL have shown resilience, being identified as the top gainers on Nifty. Conversely, stocks like Hero MotoCorp, Tech Mahindra, Nestle, Infosys, and Mahindra & Mahindra (M&M) have seen substantial losses.
Spotlight Stocks
Amidst this volatile market backdrop, Anuj Singhal suggests two noteworthy stocks that investors should consider: PIDILITE and INTERGLOBE AVIATION.
Pidilite: A Strong Market Position
Anuj Singhal has highlighted Pidilite as a stock reacting positively to recent developments concerning crude prices. The company has demonstrated remarkable momentum, achieving a breakout from a four-month trading range and surpassing a three-year rising channel. On Friday, the stock recorded more than double its typical delivery volume, which signals heightened investor interest.
Currently, share prices for Pidilite have reached a yearly peak, while open interest (OI) has fallen to a one-month low, indicating a phase of short covering in the futures market for the second consecutive day. This softening of crude prices presents an added advantage for Pidiliteโs stock performance, making it a compelling option for investors.
InterGlobe Aviation: Strong Momentum
The second spotlight stock selected by Anuj Singhal is InterGlobe Aviation. He notes a strong bullish trend, with the stock exhibiting excellent upward momentum over the past eight months. It is approaching the threshold of a significant 5-year rising channel, with share prices peaking in recent sessions.
The trading volume for InterGlobe on Friday was impressive, with delivery volumes reaching three times their usual levels, indicating robust investor confidence in the stock. Additionally, there has been noticeable short covering in futures over the last two days, further suggesting a positive outlook.
Conclusion
In conclusion, while the market experiences fluctuations and profit-booking phases, stocks like Pidilite and InterGlobe Aviation exhibit strong potential. Investors are advised to closely monitor these stocks and consider their investment plans in light of the current market dynamics.
Disclaimer: The views expressed in this article are personal opinions from the experts. The management of Moneycontrol.com is not liable for any investment decisions made based on this information. It is advisable for users to seek the counsel of a certified financial expert before making investment choices.
