Sensex, Nifty50 Top Gainers and Losers: BUY Tata Steel for near term gains and avoid Bajaj Finance, says analyst
The consolidation in Nifty is on the expected lines and we recommend focusing more on the sector/stock selection for now. Apart from banking, sectors like auto and selectively pharma, realty and metal are likely to do well in near future, Religares Ajit Mishra says
Domestic equity markets witnessed an eventful trading session with two-way trades happening throughout the day. After a strong opening, bears took over, leading to significant fall in BSE Sensex and Nifty50.
However, the last half-an-hour saw bulls gaining ground. The Sensex ended at 59,756.84, up by 212.88 points or 0.36 per cent.
Meanwhile, the Nifty50 settled at 17,736.95, up by 80.60 points or 0.46 per cent. Nifty Bank closed at 41229.30 and was up by 176 points or 0.43 per cent.
Led by Tata Steel, the 30-share Sensex ended with 21 stocks in green while remaining in red. In Nifty50, 38 stocks advanced against 12 declines. Nifty IT was the sole loser among its 15 sectoral peers. The biggest gainer was Nifty Realty (+2.9 per cent) followed by Nifty Metal (up 2.7 per cent) and Nifty Oil & Gas (+1.36 per cent).
"Markets ended with modest gains on the expiry day of October month derivatives contracts amid mixed cues. After the initial uptick, the Nifty index oscillated in a range and finally settled closer to the upper band of the day’s range at 17,736.95 levels. Meanwhile, sectoral indices also traded mixed wherein buoyancy in realty, metal and oil & gas kept the traders busy while the IT pack was on the back foot. The broader indices too traded in sync with the trend and gained nearly half a percent each," Ajit Mishra, Vice President at - Research at Religare Broking said.
"The consolidation in Nifty is on the expected lines and we recommend focusing more on the sector/stock selection for now. Apart from banking, sectors like auto and selectively pharma, realty and metal are likely to do well in near future. Participants should align their positions accordingly," he added.
Technical analyst Nilesh Jain of Centrum Broking picks two stocks - one each from gainers and losers to give his strategy. One is Tata Steel and the other is Bajaj Finance.
Sensex, Nifty50 top gainers and losers
Source: NSE
Tata Steel: Buy| LTP: Rs 104.20| Target: Rs 110 | Stop Loss: Rs 100| Upside 6%
Buying is recommended at current levels with a near term view, Jain said, while adding that the Tata Group steel stock has emerged from a falling channel trend line.
Bajaj Finance: Avoid | LTP: 6,975.00 | Stop Loss: Rs 6800 | Downside 3%
Avoid long positions for now as downside of Rs 200 is open at current levels, said Centrum's Jain. He sees resistance at Rs 7150. Any new buying position should be made once the stock breaches Rs 7200.
(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.)
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