Avoid buying at upper levels: Dilip Bang

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By Dilip Bang of Nirmal Bang

The US markets have still not recovered from the recent financial meltdown. This is clearly evident from the poor economic data that was reported a while ago. The home sales figures that are lower than those recorded at the time of the financial meltdown, are adding to the US's worries. However, on the domestic front, India is likely to see more liquidity in the markets owing to foreign investments as the country is a safer bet compared to other economies.

The first quarterly results of India Inc for the financial year 2010-11 that were released recently have not been very encouraging. The Indian markets are likely to remain range-bound in the coming fortnight. The markets seem to lack much upside above the level of 5,550 on the Nifty. It has support at the 5,450 level. However, traders should avoid buying if this level on the Nifty breaks.

Bank Nifty as well as banking stocks look good at declines. Among stocks, State Bank Of India (LTP: Rs 2,823.70), IndusInd Bank Ltd (LTP: Rs 218.10), HDFC Bank Ltd (LTP: Rs 2,193.05) and Axis Bank Ltd (LTP: Rs 1,358.20) look positive for investment as well as trading purposes.

Market players can also look at Tata Motors Ltd (LTP: Rs 991.80), Ruchi Soya Industries Ltd (LTP: Rs 126.95), Atul Ltd (LTP: Rs 133.95) and SRF Ltd (LTP: Rs 284.40) from investment and trading perspectives.

I advice traders and investors to avoid buying at upper levels due to global uncertainties that we might witness in the coming fortnight.

Sourced from Beyond Market.

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