Indian stock markets traded higher on Monday, with the broader Nifty index regaining the key 7,450 mark. Analysts say markets have made a short-term bottom last week, when the Nifty hit a low of 7,241.
"I do believe that Indian industrial economy and also the stock markets have bottomed out, there is enough opportunity to make money from the current levels," said G Chokkalingam, founder at Equinomics Research & Advisory. Oil prices have bottomed out at $28-$29 per barrel, which is positive for stock markets, he added.
K Subramanyam, co-head (equity advisory) at Altamount Capital expects markets to rebound further in the coming days. He expects stocks in the banking and capital goods sectors to lead the recovery on the back of short covering.
G Chokkalingam's Stock Ideas:
1) InterGlobe Aviation: Investors can buy the stock if it falls to Rs 900 levels. Prefer InterGlobe over SpiceJet on account of the former's higher profitability.
2) Cairn India: Oil prices have bottomed out. At a price of Rs 115, cash in the balance sheet is 90 per cent of market cap.
3) Maruti Suzuki: One should not worry too much about the currency impact on the stock. In these volatile times, Maruti is one of the safe bets to remain defensive.
K Subramanyam's Top Picks:
1) ITC: The stock has been in a range, we have not seen as much volatility in the counter as we have seen in Hindustan Unilever. There is not much for the counter to give up. Rs 300-Rs 310 levels have excellent support for the stock.
2) Energy stocks: Positive on Indraprastha Gas(IGL) and Petronet LNG. IGL will probably see levels of Rs 600 in coming days and Petronet LNG probably should regain levels of Rs 260-Rs 265 in the near future.
3) L&T/Bhel: Severe shorts have been built up in these stocks. Some short covering could be expected in L&T. It could see a relief rally to levels of Rs 1,180.
RECOMMENDED FOR YOU
POPULAR