Buy stocks on declines around 5100 on Nifty: Dilip Bang

In the previous fortnight, data from the US showed some revival. However, the situation in the Euro zone is still bleak.

On the domestic front, India’s apex bank, the Reserve Bank of India (RBI) in its monetary policy review left interest rates unchanged over fears of rising inflation. The RBI kept the repo rate unchanged at 8% and the cash reserve ratio (CRR) at 4.75%. It, however, reduced the Statutory Liquidity Ratio (SLR) by 1% to 23% to improve liquidity in the system.

Corporate results of India Inc were mixed and in line with market expectations, except for a few pharmaceutical companies and mid-cap IT stocks. However, the coming quarter results could witness a decline. Company managements are already sounding cautious about this likely development.

Rainfall continues to play truant, with the country witnessing rains in spurts and starts, adding to the worries that it may lead to a further spike in inflation. All in all, the government appears to be doing nothing to uplift market sentiments. Despite this situation, FII flows into India were surprisingly good.

The Indian markets will remain volatile in the coming fortnight due to the uncertainty in the Euro zone and India. But markets look good and traders as well as investors can buy on declines around the 5,100 level on the Nifty.

Stocks like Bajaj Finserv Ltd (LTP: Rs 745.10), Bajaj Finance Ltd (LTP: Rs 1,046.80), JK Cement Ltd (LTP: Rs 230.15), Supreme Industries Ltd (LTP: Rs 249.35), Oracle Financial Services Software Ltd (OFSS) (LTP: Rs 2,774.85), Reliance Industries Ltd (LTP: Rs 742.90), Cairn India Ltd (LTP: Rs 334.60), IFB Industries Ltd (LTP: Rs 70), Hindustan Unilever Ltd (LTP: Rs 467.15), Yes Bank Ltd (LTP: Rs 368.05), Axis Bank Ltd (LTP: Rs 1,040.85) and ICICI Bank Ltd (LTP: Rs 939.70) look good from a trading and investment perspective.

Source: Nirmal Bang's Beyond Market

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