Stocks to buy: Raja Venkatraman recommends three stocks for today — 28 January
Subscribe to enjoy similar stories. On 27 January, despite domestic institutional investors (DIIs) buying equities worth ₹67,000 crore during the month, the market remained under pressure. The global market reacted to US President Donald Trump's directives.
The Trump administration is likely to adopt a targeted approach, focusing tariffs and restrictions on sectors posing economic and national security risks. This "small-yard, high-fence" strategy aims to minimize disruption while addressing critical concerns. A combination of factors like weak US and European market cues, monthly F&O expiry later this week, persistent foreign institutional investor (FII) fund outflows, and muted third-quarter corporate earnings so far have continued to push investors in reducing their equity exposure.
The entire market is focussing on the upcoming events, including the US Fed rate cut decision (28-29 January), and India's Union budget (1 February), with the market anticipating fiscal stimulus through income tax cuts. We had mentioned last issue that “…more bearishness can seep in once 48,000 is given away ", the Bank Nifty managed to hold on and is now relying on an oversold rebound to emerge to bring in some stability to the current trends. The breach of these levels has assumed significant importance as bearish sentiment escalates.
With the expectation of a muted Q3 now taking centre stage, the Bank Nifty will remain the weaker index as we head into the week. There is a widespread panic, and every rally now will pose itself as a selling opportunity. As the trends remain under pressure, we are entering the next week with some pessimism that may continue in the next few days.
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