Sensex, Nifty in red! Should you buy or sell today? Know from these experts, which are the best bets in equities

The Indian benchmark indices namely Sensex and Nifty 50 have reversed their trend. At around 1036 hours, Sensex was trading at 36,071.59, lower by 198.48 points, or 0.40%, whereas Nifty was down 62.10 or 0.57% , trading at 10,826.25. However, Sensex gave up 222 points within just a few minutes of opening session. Such performances can be attributed to global peers who are trading in red today, as investors show caution ahead of the US Federal Reserve policy announcement. On the other hand, the rupee appreciated against US benchmark dollar index at interbank forex market, due to drop witnessed in crude oil prices to a 14-month low. 

Analysts at Standard Chartered said, “Investors are cautious ahead of two days US Fed meet that starts today. Nifty50 technical supports are placed at 10800 and 10750 while upside resistances are at 10950 and 11000 levels.”

In this midst of highly sentimental markets, as an investor who are willing to place their bets today in Dalal Street, must select the right stocks for investment. It is no mystery that no one likes to lose their money. 

Here are some stocks which are recommended as buy or sell by analysts. 

According to Motilal Oswal:

Indraprastha Gas!

Analysts there said, "We foresee several catalysts for the stock: (a) inclusion of gas under GST, (b) effective implementation of ban on polluting industrial fuels, (c) increasing penetration of CGD in new areas, boosting intercity/highway travel and (d) further restriction on diesel vehicles in a move to curb pollution."

They added, "We cut our P/E multiple by 10% from 27x to 24.3x to account for the threat that EVs may pose over the longer term. Valuing IGL at 24.3x Dec’20E EPS and adding the contribution from JVs, we reiterate Buy with a TP of INR381."

ABB! 

Analysts at Motilal said, "ABB has been a market leader in the power grids business and had recently bagged an HVDC project from PGCIL for INR36b. With the divestment of this business, ABB will lose out on incremental growth available in the power T&D business. Even the valuations at which the India business will be divested hold the key as ABB has divested the global business to Hitachi at 1.0x its CY17 sales, whereas India business trades at 3.3x CY18 sales and 38x P/EBIT."

They added, "We have a Sell rating on the stock given its premium valuations. We derive a target price of INR990, valuing the company at 30x Dec’20 EPS, in line with 10-year average."

Healthcare sector! 

Over the past five years, a few companies in the domestic formulation (DF) space have witnessed a meaningful increase in revenues from in-licensed products. 

Motilal says, "We remain positive on the DF business due to medical representative (MR) led brand creation/enhancement, which aids sustained growth and provides better profitability. Key beneficiaries of in-licensing are Lupin, Sun Pharma, Cipla, Cadila Healthcare and Dr. Reddy’s Lab."

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According to JM Financials:

Zensar Technologies! 

Analysts there said, "We initiate coverage on Zensar (ZENT) with a BUY rating for a 20% upside. We believe the business refocusing underway since the CEO change in 3QFY16 is nearing completion. ZENT is positioning itself as a challenger to the scale players in clients with significant IT spend
(7/15 of the Top 20/40 clients are Fortune500 companies). While this may constrain margins and/or DSOs in the near term the potential revenue upside could be significant, in our view."

They added, "ZENT currently trades at 15x 12-month forward EPS; our Dec-19 TP of INR 290 is also at 15x target PER, that is in-line with the 6% 3-year median discount to market-cap weighted PER of mid-cap IT services players (MTCL/NITEC/HEXW/LTI). We see a 20% potential upside in the stock over the next 12-18 months. Sale of the MVS business could be a potential near-term trigger."

According to IIFL Securities:

Jindal Steel & Power!

The stock has been consolidating for the past fifteen days and has finally broken out from a classic 'Cup and Handle' pattern on the smaller time frame chart. The breakout has been accompanied with smart uptick in traded volumes. Jindal Steel has also surpassed its short term moving averages. Hold long position with mentioned stop loss on closing basis.

IIFL has given buy call between Rs 163 - Rs 165 for target price of Rs 170. 

Therefore, if you are planning to invest today in equities, then you might want to have a look at the above mentioned stocks. Remember, every penny earned must be spent wisely!