Market expert Raghvendra Singh on Thursday said the ongoing weakness in the domestic benchmarks could be attributed to expiry-led pressure and warned that the pain may extend till Tuesday next week.
He, however, added that a pre-Diwali rally may follow.
“After that, there could be a pre-Diwali rally in the offing and we may see 26,000 level on Nifty50. On the lower end, 24,800-24,900 would act as support,” Singh told Business Today.
On the stock-specific front, Singh remained cautious on Tata Motors Ltd. “Majority of automobile counters went up post the GST rate cut announcement, except Tata Motors. I think there isn’t much upside potential in the stock for the near term. Investors should wait till the demerger is done,” he said.
For Premier Energies Ltd, Singh advised a positive stance. “The stock has witnessed some profit booking and it appears that it is ready to move higher from current levels. One should hold their positions with a stop loss of Rs 990 for an upside target of Rs 1,200. Fresh buying is also advised at the current market price,” he noted.
On Jio Financial Services Ltd (JFSL), Singh suggested an accumulation strategy. “The stock is trading around Rs 300 levels. Investors can buy this stock keeping a stop loss placed at Rs 280 for immediate targets of Rs 340-350,” he said.
Looking ahead to potential festive momentum, Singh named Hindustan Copper Ltd and Bank of Baroda (BoB) as his top picks for the near term, expecting a decent rally in both counters ahead of Diwali.