Akshay Bhagwat, Senior Vice-President of Derivatives Research at JM Financial Services, said the market would remain on a slippery footing as there's still some pain left. Index-wise, 22,000 would act as a support for benchmark Nifty50 in the near term and resistance may be found at Rs 22,800, the market expert told Business Today on Thursday.
When asked about Hyundai Motor India Ltd shares, he said, "There have been no major upward moves seen in the counter post listing. There were few attempts to break above Rs 1,900 but a lot of supply was witnessed at those levels. At the current setup, there are high risks that the stock may slip below Rs 1,600. Short-term investors can consider exiting at the current market price."
In response to a query on Tata Motors Ltd, the market specialist said, "The counter has been under severe selling pressure for the last seven months, slipping from Rs 1,200 to hit below Rs 650 level. The Rs 620-600 zone can act as a strong support zone and one can expect some bounce back from these levels. If you are open to averaging, create buy positions around the Rs 620-600 range."
If an investor is okay to switch from Tata Motors in the automobile space, Bhagwat suggested considering Ashok Leyland Ltd shares. "The stock looked strong on charts and held its strong support of Rs 200. It can hit near-term upside targets of Rs 260-270. One can bet on Ashok Leyland instead of Tata Motors over a six- to 12-month timeframe," he stated.
Meanwhile, Indian equity benchmarks were trading slightly higher today as banks and financials provided strength. However, broader indices (mid- and small-cap shares) were weak.
Six out of the 19 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank and Nifty Financial Services were outperforming the NSE platform by rising as much as 0.39 per cent and 0.72 per cent. Nifty Media and Nifty Auto slipped 3.35 per cent and 1.42 per cent, respectively.
The overall market breadth was hammered as 3,001 shares were declining while 934 were advancing on BSE. 113 stocks were unchanged.
Foreign institutional investors (FIIs) sold Rs 3,529.10 crore worth of shares on a net basis during the previous session and domestic institutional investors (DIIs) purchased Rs 3,030.78 crore worth of shares, exchange data showed.