Indian share market benchmarks BSE Sensex and Nifty 50 have tumbled over 7 per cent from the all-time highs touched in mid-February 2021. Markets have been reeling beneath strain resulting from rising US 10-year bond yields. Sanjiv Bhasin, Director, IIFL Securities Ltd, advised Surbhi Jain of Monetary Specific On-line in an interview that increased yields will assist banks to guide the gainers pack, whereas know-how shares on Nasdaq will witness revenue reserving. He stated that the Nifty 50 index might discover assist round 14,300-14,350 amid volatility, whereas it is going to face resistance on the 15,200 degree. Sanjiv Bhasin shared just a few buying and selling concepts for the approaching first quarter of the following monetary yr. Listed here are edited excerpts from the interview:
1. Amid present market state of affairs, what are your assist and resistance ranges for Nifty 50 and Financial institution Nifty within the close to to medium time period?
Nifty finds very robust assist round 14300/350 & faces resistance round 15200, whereas Financial institution Nifty finds robust assist round 33250 & 35500 will act as resistance.
2. Spike in US bond yields spooked investor sentiment. What ought to be buyers’ technique? Ought to they use it as a possibility, be cautious or watch for the additional draw back?
There are inflationary expectations which have seen bond yields spiked within the US. Additionally, the big US$1.9 trillion stimulus will see enormous borrowing by the Federal Reserve. That is to be taken with a pinch of salt as brief time period there may be the repatriation of threat on a refund within the US. However within the medium-term, it signifies the expansion momentum could be very robust which exhibits US banks come out of three years of low yields and now will reap the advantages of upper yields which can see banks lead the gainers whereas know-how shares on the Nasdaq see revenue reserving. Rising markets have already seen revenue reserving however financials will see enormous outperformance as increased yields will see extra margins with this being an ideal alternative to diversify into banks and NBFCs from choose IT and digital performs.
3. What are your high buying and selling concepts for the April-June quarter of recent fiscal?
The highest buying and selling concepts for the primary quarter of the brand new fiscal yr are State Financial institution of India (SBI), ICICI Financial institution, Godrej Properties Ltd, HCL Applied sciences, Solar Pharmaceutical Industries and Bandhan Financial institution.
4. What ought to buyers do with PSU shares on divestment hope?
PSU shares are an ideal play, as after 4 years of non-performance now look set to outperform in 2021. The highest PSU inventory picks are BHEL (Bharat Heavy Electricals Ltd), BEML Ltd, Container Company of India Ltd (CONCOR), NBCC (India) Ltd and Hindustan Petroleum Company Ltd (HPCL).
5. In addition to, gray market premium, individuals have a look at IPO subscription standing, is it sufficient to establish itemizing good points?
This has been the latest elephant within the room with a beeline to purchase on itemizing for fast returns, with most having burnt their fingers. Returns disappear as quick as they got here with choose new listings seeing an excessive amount of froth–Be watchful.