The market on last day of the trading week ended in red. The Sensex was down 46.44 points or 0.2 percent at 28077 and the Nifty was down 6.35 points at 8666.90. About 1480 shares have advanced, 1237 shares declined, and 182 shares are unchanged. European markets too were trading mixed.
Ashwani Gujral of ashwanigujral.com believes market is contracting and the intraday range is very narrow, just about 20-point range. The range expansion according to him will happen next week, so buy market on declines.
Gujral says one can also buy the Bank Nifty on dips because now with the public sector banks starting to participate, one could see levels of around 20,000 by next month. The Bank Nifty closed the week at 19,414.70 levels.
From the PSU bank space he would prefer to look at Punjab National Bank or an SBI. The stocks could see an upside of 10-15 percent.
Market expert Sudip Bandopadhyay says although the midcaps have had a dream run there is still opportunity in some of them, especially cement and consumer durables. From the cement space, he like JK Lakshmi, Mangalam Cement, Sagar Cement etc. From the consumer durables he likes Crompton Consumer. According to him with the 7th Pay Commission, good rainfall, rural demand pickup, the space will do well.
Bandopadhyay is also upbeat on SBI post the news of its merger with associate banks. He thinks it will now be among the top 50 banks in the world and has a target price of Rs 300 on the stock.
He is also turning mildly bullish on metals space and within that he would look at Hnidalco and not Tata Steel. According to him, one can get into Hindalco even at current levels with a one-year time horizon. It is a well managed company, he says. For Tata Steel they first needs to get rid of their global assets, says Bandopadhyay.
Stock specific, Parag Thakkar, HDFC Securities is still bullish on Sundram Fasteners because it is a great company with fantastic management. It is a good structural story and so maybe one should wait one correction before entering. He also thinks Exide offers a huge value and is a safe stock.
SP Tulsian, sptulsian.com says although the numbers from India cements numbers are better they are not inspiring and there is no fundamental reason to buy the stock. However, there are other companies that one can look at which are performing well.
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