Sector Spotlight: The stock markets ended in negative for fifth day in a row on Tuesday. The BSE Sensex closed at 16,958.65, dropping almost 215 points or 1.2 per cent while the 50-share Nifty50 index settled at 56,463.15, down by over 7 points or 1.2 per cent. Selling pressure was felt even in the broader markets.

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Out of the 15 sectoral indices, 14 closed in the read while the Nifty Oil & Gas index traded with strength.

Technical Analyst Nilesh Jain said that the current correction could be an opportunity to buy quality stocks. He remains bullish on bank and financial sector stocks.

However, any investment must be made with a view on how stock markets open on Wednesday. A weak opening must be a non-starter for investors willing to make investments with an immediate and near term view.

He said that even quality stocks have corrected significantly over the past 4-5 trading sessions and the risk-to-reward ratio appears rewarding. He said that PSU Bank stocks were relatively better-off than many of their other banking and financial peers. The Nifty PSY Bank index ended almost 0.3 per cent down versus Nifty Bank Nifty Financial Services and Nifty Private Banks which settled down over 1 per cent each.

Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking recommends State Bank of India (SBI) and ICICI Bank with a positional to long term view.

SBI: Buy| LTP: Rs 506| Target: Rs 530/550| Stop Loss: Rs 502| Upside 9%

Jain said that the PSU bank stocks resisted deeper correction on Tuesday. As for the SBI stock, the charts still look fine despite correction over the last three trading sessions. The risk-to-reward ratio is now favourable for India’s largest public sector bank, he added. He said that SBI share has been seeing a higher bottom and higher top.

ICICI Bank: Buy| LTP: Rs 759| Target: Rs 800| Stop Loss: Rs 750| Upside 5%

ICICI Bank shares have held on despite correction in banking stocks or the overall markets. Jain remains bullish on this stock and recommends a buy on decline and at current levels. The charts also reflect an upside, he further said. The 52-week high for this scrip on the NSE at Rs 867.

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Jain said that Nifty Bank will likely test 37000. The 12-share index has support around 36,000. He expects a pull back in the markets over the next few trading sessions. Today, the index ended at 36,341.60 and 10 stocks ended negatively while two stocks settled in the green. Besides ICICI Bank, AU Small Finance Bank was also up on Tuesday.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)