Post-Budget Crack in market; What should you buy now?

post budget crack in market

A serious crack in market!

After the 2018 Budget, we have seen a serious selling pressure in markets. From the all time highs, Nifty has fell almost 9 percent in last one week. Even few stocks like PC Jeweller and Vakrangee have seen downfall of more than 50 percent in last two weeks.

Before Budget, Nifty had started its rally from levels of 10650–10700 which has already passed now after LTCG tax which makes this year budget not favourable for Investors. However, selling pressure in global markets is also a reason behind this selling pressure in stock market. And I think once the global markets will settle and start recovering, we would see a good recovery in nifty, sensex and other indexes also. But yes, Nifty is currently around its strong base i.e 10500 from where a strong reversal can be expected.

Despite of high selling pressure, many stocks have now came at very reasonable and attractive valuations. PC Jeweller is one of them. From the level of Rs 550, stock is now available to buy around Rs 380 after having an opportunity to grab it around Rs 250 seen recently in stock.

On the other hand, Vakrangee, has also seen almost 60 percent downfall from its highs after media reports of Investigation by SEBI for the stock price manipulation case. However, company has clarified that this case is baseless. I think vakrangee at level of Rs 200 could also be a great option to bet in this weak market. Lakhs of selling orders are still pending in this scrip on exchanges. But any recovery in market can change this number significantly. Meanwhile, it is important to note that stock had started its rally from around Rs 70 ( after bonus adjustment ) which makes it very risky for any new investors to buy it in bulk. Although, avoid any bulk buying in this stock as it could be very risky. But buying in small proportion at lower levels could be a great bet.

What should you buy now?

In present market situation, I believe many other stocks have now came at very attractive valuations which could be a great opportunity. I have made a list of these stocks comprising largecaps, midcaps and smallcap. Investors can take a look on these stocks and may also consider to buy them. These Buy Calls are

  • Sintex Industries with a target of Rs 32.
  • Fortis Healthcare with a target of Rs 154.
  • Syndicate Bank with a target of Rs 85.
  • Reliance Naval with a target of Rs 50.
  • Dena Bank for a target of Rs 30.
  • SREI Infra with a target of Rs 108.
  • PFC with a target of Rs 140

Remember, any further selling pressure in market may also affect the prices of these stocks.

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