Vinit Bolinjkar, Head of Research at Ventura Securities, said, 22,800 would be a temporary support level for benchmark Nifty50. "There's more uncertainty in the market and if 22,800 is to be taken out then we could see further downside till 21,000. It would be a very pick-and-choose market. We would be bottoming up in our approach while investing," the market expert told Business Today on Tuesday.
On the stock-specific front, Bolinjkar liked Kotak Mahindra Bank Ltd from the private banking space. "Time has come for Kotak after a three-year sideways movement. The stock could do well from hereon," he stated.
The Reserve Bank of India (RBI) has lifted its restrictions on Kotak regarding onboarding new customers through its online and mobile banking channels and issuing new credit cards.
From the PSU banking segment, the market veteran selected Canara Bank Ltd as his top pick. "The stock is available at 0.79 times book (price to book). A couple of the lender's businesses would be monetised via the IPO (initial public offering) route. The stock offers significant upside potential and should be on your radar going ahead," Bolinjkar said.
Canara Bank has received the Reserve Bank's nod for divesting its shareholding in Canara Robeco Asset Management Company Ltd and Canara HSBC Life Insurance Company Ltd through IPOs.
Meanwhile, Indian equity benchmarks resumed fall today after a single-day hiatus. Domestic indices settled lower as consumer and bank stocks dragged. Broader markets (mid- and small-cap shares) also declined.
12 out of the 19 sector gauges -- compiled by the NSE -- traded in the red. Sub-indexes Nifty FMCG, Nifty Consumer Durables, Nifty PSU Bank and Nifty Bank were underperforming the NSE platform by falling as much as 0.88 per cent, 1.36 per cent, 0.54 per cent and 0.35 per cent, respectively.
The overall market breadth was weak as 2,918 shares declined while 1,032 advanced on BSE.
Foreign institutional investors (FIIs) offloaded Rs 3,937.83 crore worth of shares on a net basis during the previous session, while domestic institutional investors (DIIs) bought Rs 4,759.77 crore worth of shares, exchange data showed.