Amar Deo Singh, Head Advisory at Angel One, on Monday said the private banking sector witnessed a solid move. On the stock-specific front, ICICI Bank Ltd and HDFC Bank Ltd will continue to remain strong on charts, the market expert told Business Today TV. These two stocks, given their weightage in Nifty Bank, can drive the sub-index to further highs, he added.
For HDFC Bank and ICICI Bank, investors should opt for a 'buy-on-dip' strategy with no shorting recommended, the market specialist further mentioned.
When asked to share a view on Vodafone Idea Ltd (VIL) shares, he said the stock has almost halved from its one-year high in a short period. "Currently, the counter is driven by the happenings which are taking place such as the Supreme Court judgement and also the earlier debt issue," Singh stated.
"If you look at the telecom space with charts of VIL on the one hand and Bharti Airtel Ltd on the other, you will see a completely different picture. Airtel is at record highs and showing no signs of weakness. One should look at accumulating Airtel's stock on corrections rather than get into Vodafone, which we don't know how it is going to play out," Singh also said.
VIL shares took a sharp beating after the Supreme Court dismissed petitions filed by telecom companies to re-compute adjusted gross revenue (AGR) dues. However, the scrip staged a rebound today the telecom operator said it concluded a $3.6 billion deal with mobile and network manufacturers Nokia, Ericsson and Samsung for supply of equipment over three years.
"The deal marks the first step towards the roll-out of the company's transformative three-year capex plan of $6.6 billion (Rs 55,000 crore)," VIL stated.
Meanwhile, Indian equity benchmarks scaled their fresh record high levels today, led by gains in state-owned banks, automobile, energy and realty stocks. Broader markets (mid- and small-cap shares) were also trading on a positive note.
13 out of 16 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty PSU Bank, Nifty Auto, Nifty Oil & Gas and Nifty Realty were outperforming the platform by rising as much as 3.22 per cent, 1.09 per cent, 1.83 per cent and 1.80 per cent, respectively.
The overall market breadth was strong as 2,374 shares were advancing while 1,593 were declining on BSE.