Stocks to buy: Raja Venkatraman recommends three stocks for today — 23 January
Subscribe to enjoy similar stories. The Nifty and the Sensex experienced a rise, driven by HDFC Bank's solid third-quarter results, which uplifted market sentiment. However, the overall optimism was curbed by declines in energy, metal, and state-run bank stocks.
The IT index stood out as a top performer for the day, extending its gains late into the session and aiding the market's recovery. The major triggers plaguing the markets have been the persistent selling by foreign portfolio investors (FPIs), an economic slowdown, and underwhelming corporate earnings, which are significant concerns for Indian investors. The headline indices are hitting new lows, with broader markets likely to follow.
Emerging markets have yielded minimal returns over the past decade compared to the US market in US dollar terms. Any increase in inflows or reduction in selling in emerging markets might only be confirmed once the dollar weakens. We had concluded yesterday: “…PCR at 0.65 hinting at a potential rebound from oversold status…".
The bounce indicated occurred towards the end of the day, triggered by the HDFC Bank results that salvaged some lost pride. The incessant decline and the punishing poor Q3 numbers are highlighting the dismal show that we are observing from the street. The translation into the prices is not providing any encouraging signs to the market.
With the constant pressure that is forcing the trends lower, the rally that we are seeing in the markets is not inviting any enthusiasm. The Open Interest data are showing some strong Put writing at lower levels thus leading us to take this opportunity to reconsider shorting further. With deep oversold conditions being witnessed, a rally is possible.
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