Last week, see seen a great volatility in india stock market. During the end of November series, it was looking that Nifty may end this series around 10400 levels. But within a week, it loose more than 300 points to come back at major levels of 10100.
Some of the main reasons why market fell so much includes unexpected hike in interest rate by SBI. This created a situation for investors to believe that now it’s time to see a constant rise in interest rates by RBI in future.
However, Nifty doesn’t broke levels of 10100 which is considered as a very important level in technical charts. Previously, nifty had bounced back from this levels as a support. Now, from technical point of view, i don’t think that we would see any great selling in Nifty unless it break their 10100 important levels. But in case, it brakes, then there are chances that we could see support from 9950 levels. Although, currently i don’t see any big reason to have some great sell off in market.
Now, i am going to discuss those two stocks where investors should keep a close watch. These Two stocks which I have selected are Reliance Industries and Videocon Industries.
Reliance Industries imports a significant part of oil from other foreign countries to maintain its production of many other crude products. One of the major production which has been beneficial for the company is of petrochemical business. But in case of rising crude oil prices, there are chances that we could a significant rise in expenses for Reliance. And if it really happens, then there are chances that we could see levels of in short-term. Therefore, at present levels, it could be some risky for traders to make any buy position in stock. Although, at present, it is possible that this rise in crude oil don’t affect the company financials significantly. But a greater rise in price in crude oil prices could have some affect.
Another stock which could have a great impact on its businesses due to rising crude prices is of Videocon Industries. Company had done a great investment in its oil business. In 2015, when prices of crude oil came at around $30, its oil business had also became less profitable for company. But now when there is a significant rise, i think it would have a positive impact on the financial statements of the company. Therefore, from present levels, it is possible that we could see some good buying in stock.
Beside these, three more stocks now looks good to me after correction in Nifty.
Indiabulls housing finance
First is from housing finance segment i.e Indiabulls housing finance. Recently, its stock had shown highest level of around Rs 1350. But now stock is quoting around Rs 1175. If Nifty sustain their important levels of 10100, then there are many chances that we could levels of Rs 1350–1400 again. Therefore, it could be good opportunity for both traders and short-term investors.
My second stock is Vedanta. From highs of around Rs 340, stock has now came at Rs 288. I think, for next 1–2 months, any recovery in market can help this stock to move to Rs 330.
Radiko Khaitan is my third choice. Recently, its stock had made highs of Rs 309, from which stock is now quoting around Rs 260. From technical point of view, i think stock could again cross levels of Rs 300 in next few weeks.
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