Indian markets continued to be under pressure for the fifth consecutive day on February 27, with the Nifty slipping below the important 11,600-mark, as investors fear that the coronavirus outbreak is turning into a pandemic and could hit the global economy hard.
Between February 20 and 26, the Sensex has lost over 1,400 points and the Nifty, which had fallen to 11,559.15 at 1016 hours, nearly 450 points.
"At the current juncture, the Nifty is hovering around its key cluster and 200 SMA on the daily scale. However, till the time the Nifty holds below its immediate resistance of 11,800-mark, the bears will have upper hand in the market and we may see further correction towards 11,615- 11,500 levels," said Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services.
Here are the three stocks for which brokerages have maintained a buy rating, with an upside of 8-44 percent:
Havells India | Brokerage: HSBC | View: Maintain buy rating with target at Rs 700 per share
The weak results in recent quarters drove earnings downgrade and weighed on the stock, however, things are changing for the positive from the next quarter.
HSBC expect over 24 percent compound annual growth in profit before tax over FY20-22.
Axis Bank | Brokerage: Nomura | View: Maintain buy call with target at Rs 1,050 per share
Nomura says Axis Bank is its top pick and it expect RoE of 16-17 percent by FY22.
It finds the current valuation undemanding.
The broking house reiterates the positive stance as the retail-asset business continues to outperform, while corporate-asset quality cycle is clearly nearing an end.
Nestle India | Brokerage: UBS | View: Maintain buy on the stock; raise target to Rs 19,250 per share
UBS says the company's revenue growth momentum continues and it sees an upside potential in the margin.