Sensex Up 200 Points In Opening Trade, Nifty Above 22,100: Which Stocks To Buy Today?
The Indian stock market continues to maintain upward movement on May 14 even as most shares on the Sensex are trading in the green territory in the opening trade today. The BSE Sensex on May 14 traded higher by about 200 points at nearly 73,000 in the early trade, while the NSE Nifty traded above 22,100.
However, later the Sensex took a short dip to hit a low of 72,683.99 points and then recorded to currently trade 123 points higher at 72,900.
The rupee on Tuesday opened on a flat note at 83.51 against US dollar in early trade.
Among Sensex shares, 18 out of 30 shares were in gain. The top gainers were Power Grid, JSW Steel, NTPC, HCL Tech and Wipro. The top laggards were Asian Paints, Axis Bank, ITC, Nestle India, and ICICI Bank.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The trend in May of sustained selling by FIIs and sustained buying by DIIs continues. So, in May, FIIs have sold equity in the cash market for Rs 29,474 crores and DIIs have bought for Rs 22,973 crore. This trend is likely to continue and the spike in India VIX will ensure high volatility. Under these circumstances the best option for investors is to wait and watch for a trend change, which can happen any time. Clarity on election trends is likely to come before June 4th, the counting day, and the market response can be strong.”
Buy on dips would be a good strategy now. FII-heavy stocks which have borne the brunt of FII selling are good picks for bottom fishing. Leading banks, capital goods majors, leading autos and top IT companies like TCS are fundamentally strong. The decline in April CPI inflation to 4.83% and core inflation to 3.2% augur well for the macro economy. The MPC is likely to hold rates for the near term, he added.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, “India’s CPI inflation rate hits an 11-month low, while Nifty bulls ride the anticipation of rate cuts towards its all-time high. Despite this apparent climb, increased volatility lurks beneath the surface, signaled by the India VIX breaching the 20 level. Investors await Fed Chair Powell’s speech and key US inflation data, while technical analysis suggests bullish momentum with the ‘Bullish Hammer’ candlestick pattern. Corporate earnings flood in, with notable reports from Zomato, DLF, and Jindal Steel, alongside surging copper prices.”
Stocks To Watch Today
Trade recommendations favour buying Nifty and Bank Nifty at current market prices, with a top stock pick on AUROBINDO PHARMA MAY FUTURES, driven by momentum, Tapse said.
Investors should watch out for results on May 14, 2024, from Bharti Airtel, Colgate-Palmolive, Bharti Hexa, Idea Forge, Oberoi Realty, Siemens, and Zydus Wellness, among others.