Akshay Bhagwat, Senior Vice-President of Derivatives Research at JM Financial Services, on Thursday said the market would be rangebound in the near term. On the stock-specific front, the market expert shared his view on recently-listed NTPC Green Energy Ltd. "For NTPC Green, data points are limited. That said, support on the counter will be at Rs 130. Those holding the stock can continue with their positions, expecting upside targets of Rs 165-170," he told Business Today.
When asked to suggest a few pockets or sectors ahead of next year's Union Budget presentation, Bhagwat said, "If anyone is concentrating on Budget-related stocks, I believe the fertilizer pack can be one area, given the strong roundup momentum pickup seen in GNFC, Chambal Fertilizers and Tata Chemicals stocks."
In response to a query on Apollo Tyres, the market specialist said, "Support on the counter will be in Rs 450-500 zone. Near-term resistance is placed at Rs 550. Investors can enter the counter at current levels. A breakout is likely to happen in the coming days and when that happens, Apollo Tyres can hit a potential upside target of Rs 700."
Bhagwat preferred shares of Bajaj Finance Ltd from the finance services sector. "investors can look at Bajaj Finance. The stock has a strong price structure. I'm expecting this counter to retest Rs 7,700-plus levels in the near term," he stated.
Meanwhile, Indian equity benchmarks were trading lower today, dragged by consumer, automobile and energy stocks. Broader markets (mid- and small-cap shares) were also down.
14 out of the 16 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty FMCG, Nifty Consumer Durables, Nifty Auto and Nifty Oil & Gas were underperforming the NSE platform by falling as much as 0.99 per cent, 0.50 per cent, 0.72 per cent and 0.69 per cent. Nifty IT and Nifty Metal rose 1.09 per cent and 0.20 per cent, respectively.
The overall market breadth was weak as 2,440 shares were declining while 1,449 were advancing on BSE.
Foreign institutional investors (FIIs) sold Rs 1,012.24 crore worth of shares on a net basis during the previous session and domestic institutional investors (DIIs) purchased Rs 2,007.85 crore worth of shares, exchange data showed.