Again, markets have started falling like a sharp knife. Even, Nifty has also break level of 10200 which was considered as one of the good support. Now, there are expectations that Nifty may now get support from next base lies between 10150-10100.
Behind this sell-off, Domestic PSU banks problem is in Top reasons. Due to recent Fraud in PNB, there are chances that Banks will soon harder the Credit facility. Those businesses needs new loans of over Rs 5 crore may also face some new hurdles and difficulties. On the other hand, overall selling pressure in Global markets has also helped in weakening our domestic markets.
Although, I would say that at the time of Budget 2018 time, risk was there in good amount which is still present at current levels and will always remain in our markets. Therefore, it is very important for both traders and investors to first look upon their buying capacity before any further buying and should not take much larger risk in Highly valued and expensive stocks. One more thing, avoid any bulk buying because we don’t know the actual point of time and level from where markets will start getting recovered.
In current levels, investors and traders who are still waiting for the good opportunities have now some fresh options. Yesterday’s fall has brought some of the good potential stocks. The very first stock that has now came to at that levels from where a fresh buying can be initiated is Suzlon Energy.
Suzlon stock fell almost 7 percent today and made a new 52 week low. Don’t think that I am suggest it for fresh buying because it has came to new 52 week low. Instead, I think from current levels i.e 11.20, the risk-reward ratio now looks somewhat favorable. Comparing its financials with its peers and looking upon the Fundamental condition, stock has limited downside up to Rs 9 which is only possible in extreme bearish environment. Whereas, in higher side, stock may easily go to Rs 16-17 in next one or two months. So, I think one can really start some fresh buying in this stock. But remember avoid Bulk buying.
South Indian Bank
Second stock where investors can take a look in this market is South Indian Bank. From levels of Rs 32, it has now came to Rs 24 which really looks attractive. In lower side, stock may fall up to Rs 20-22, but in higher side, stock may reach around Rs 30 easily in any market recovery. Financials of the company and valuations are also not bad and even it looks very attractive at current levels.
Another stock where investors can take a look in this market fall is Sintex Industries. Currently stock is trading around Rs18 which is around its 52 week. However, the favourable point at current levels is that stock may fall up to Rs 16 as per both technical charts and fundamentals. But in high side, stock has potential to go around Rs 25-26 in next few weeks. Business modal of company is very capital intensive and margins availability is also little low. But as per overall condition of company, I think stock in real terms has more value than current share price.
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