Nifty in no-trade zone; like NBFCs, HUL, L&T: Experts

Nifty currently is in a sort of no-trade zone and seems to be range bound between 8200-8300, so avoid taking positions in that range is the word coming in from Sudarshan Sukhani of s2analytics.comHe says if the Nifty remains in this range then one can stay away but if it falls and takes support around 8200 then be buyer and a breakout above 8300 one can go long. “The bias still remains to be a buyer than a seller,” believes Sukhani.Market is not showing signs of a deep correction although 100-points either ways is a given, says Sukhani. With the Bank Nifty continuously seeing selling pressure at every higher level, Ambareesh Baliga, independent market expert thinks there could be some profit booking happening in private banks, which have performed well over the last 8-9 months. Meanwhile, the asset quality problems for the public sector banks is likely to continue. Sector and stock specific, Sukhani thinks both UltraTech and ACC from the cement space are making bullish pattern and are not short selling candidates unlike Ambuja. The declines seen in UltraTech and ACC could be preparations towards a reasonable upmove, believes Sukhnani. From the broader market within the NBFC space, Mayuresh Joshi of Angel Broking like LIC Housing Finance with a growth potential over the next 12 months.Meanwhile, Baliga is optimistic on Larsen and Toubro and BHEL on the back of upcoming draft policy on the capital goods space which is likely to be positive for the sector as whole says. Sukhani believes Hindustan Unilever is likely to outperform the Nifty. “If nifty stays between 8200-8300 then HUL will inch upwards but if Nifty goes below 8200 then although HUL will not rally, it will do better than the Nifty,” says Sukhani. It is a buying opportunity on every dip, even a minor breakout, he adds. For more on their stock specific ideas watch video