Time to accumulate IT stocks on dips; buy these 3 PSUS on dips: Dharmesh Shah

economictimes.indiatimes.com:

Dharmesh Shah, Head-Technical, ICICI Direct, says “any correction in the PSUs from the current level should not be constructed as negative, but should be looked upon as a buying opportunity because we believe most of the negative news seems to be getting priced in there. Any dip from the current level is a buying opportunity. So, stocks like HAL or BEL, Bharat Electronics in the defence space and also Cochin Shipyard, one should definitely consider at the current levels.”

Do you expect the Nifty momentum that we have been seeing on Thursday and Friday to sustain for the benchmark?
Dharmesh Shah: Yes, definitely, I think so. If you see the recovery push after the Fed event, the sentiment seems to be slightly bullish. I would not say major bullish, but yes, it seems to be getting better and better going forward. We believe a target of 22,400 for the Nifty in the coming week. At the same time, we see 21,700 remaining as a strong support in the current trading session.

Nifty seemed to be finding support at 50 DMA in Friday’s trading session. So yes, 21,900 will remain as a very strong support for the Nifty in the short term and we should be looking for a target of around 22,400. Overall, gradually both Nifty as well as Bank Nifty should see a smart recovery in the coming week

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