Rudra Murthy BV, MD at Vachana Investments, on Tuesday said the market has not yet made a bottom and advised investors to stay with large-caps as valuations are more comfortable compared to mid- and small-caps. When asked to select stocks from the new-age space, the market expert picked One 97 Communications Ltd (Paytm's parent) and Zomato Ltd.
"From the new-age companies or e-commerce business, Paytm and Zomato are the two stocks which I will buy. Paytm at Rs 400-500 levels would have been more comfortable but even after the upmove towards the 800-900 zone, the counter is still looking attractive," Murthy told Business Today.
"For Zomato, Rs 250-270 levels is a good buy. Strong support for this stock will be at Rs 240. One should keep a stop loss placed at Rs 235 for expected targets of Rs 350-400," the market specialist also said.
"For long-term investors with a three- to five-year time horizon, Swiggy Ltd can be a better bet than Zomato. But, if you are a short-term investor, pick Zomato because Swiggy might take some more time to move beyond the comfort, both in terms of profitability as well as market share," he added.
In the new-age space, Murthy said he will avoid Ola Electric Mobility Ltd shares. "I will not venture into any other stock except Zomato, Paytm and Swiggy (for long-term)," he underscored.
On the stock-specific front, shares of Ola Electric, Swiggy, Zomato and Paytm were up 5.42 per cent, 3.41 per cent, 2.01 per cent and 0.90 per cent, respectively.
Meanwhile, Indian equity benchmarks were trading lower today, dragged by automobile and pharma stocks. However, broader markets (mid- and small-cap shares) were positive.
Nine out of the 16 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Auto and Nifty Pharma were underperforming the NSE platform by falling as much as 1.30 per cent and 0.82 per cent. In contrast, Nifty IT and Nifty FMCG rose 1.07 per cent and 1.06 per cent, each.
The overall market breadth was strong as 2,252 shares were advancing while 1,579 were declining on BSE.