Buy stocks if Nifty dips to 5500-5600 levels: Dilip Bang
Markets look good on declines. The upside on the index is likely to remain range bound. However, traders and investors can buy stocks at current levels or on declines around the 5,500 - 5,600 levels, says Dilip Bang, Nirmal Bang.
October 27, 2012 / 13:53 IST
By Dilip Bang of Nirmal Bang
The government has been on a reform overdrive since the past few weeks. It opened up key sectors like retail, aviation and insurance by allowing foreign direct investment (FDI), deferred the General Anti Avoidance Regulation (GAAR), announced highway and road contracts under the engineering, procurement and construction (EPC) model as against the earlier model of build, operate and transfer (BOT) among a host of important announcements. All these measures lent support to the markets in the previous fortnight.The markets were not only propelled by government intervention, they also got a boost from the appreciation in the rupee, which reduced the landed prices of a lot of imported materials, especially oil. However, inflation continues to be a major cause of concern since it is high due to the recent hike in petrol and diesel prices announced by the government.Markets look good on declines. The upside on the index is likely to remain range bound. However, traders and investors can buy stocks at current levels or on declines around the 5,500 - 5,600 levels. Stocks like Cairn India Ltd (LTP: Rs 334.65), Power Finance Corporation Ltd (LTP: Rs 197.30), Rural Electrification Corporation Ltd (LTP: Rs 217.30), Tech Mahindra Ltd (LTP: Rs 944.75), Balrampur Chini Mills Ltd (LTP: Rs 71.55), Indiabulls Financial Services Ltd (LTP: Rs 221.40) and CCL Products (India) Ltd (LTP: Rs 299) look good from investment and trading perspectives.In the coming fortnight, market performance is likely to be driven mainly by the quarterly results of India Inc. Also, the street will be eagerly awaiting the upcoming monetary policy review by the Reserve Bank of India (RBI) and see if this time around the apex bank will cut interest rates or not.Source: Nirmal Bang's Beyond MarketClick here to read the full magazineDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
