On Saturday, the S&P BSE Sensex fell 0.4% or 259.58 points to 71,423.65, while the Nifty 50 closed 0.23% or 50.60 points lower at 21,571.80.
The stock market will remain closed today due to a public holiday in the country celebrating the inauguration of the Ram Temple in the northern city of Ayodhya. We only have three trading sessions this week. The stock market will be closed on Friday, January 26, in observance of the 75th Republic Day.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial information!” Click here!
Also read: Wall Street week ahead: Investors eye economic growth indicators, key earnings
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, is confident that Ayodhya will grow significantly as a spiritual tourism destination considering the attention and excitement surrounding the Ram temple in Ayodhya. Travel, hotel, and other tourism-related businesses have attracted investors due to the huge potential of the industry. Investors should see the long-term potential of investments, but they should not overly seek these expensive stocks.
“Many stocks in this segment have grown too fast and are up more than 100% in just a few weeks. This is a sentiment-driven rally triggered by retail exuberance. In general, the valuations of the mid-cap and small-cap segments are too high. , unjustified, almost in frothy territory. This frenzy of mid and small cap is partly driven by the novice retail investors who chase these stocks and partly by mid and small cap investment funds, to which inflows are strong and continuing.
Ayodhya tourism has excellent long-term prospects, investors should pay attention to the valuations. Large caps in IT, capital goods, telecom and selective private sector banks are safer bets now,” said Vijayakumar.
Also Read: Buy or sell: Ruchit Jain recommends these two stocks to buy next week
Going forward, this week’s Q3 earnings season will continue to be the focus as a number of major companies, including United Spirits, Bajaj Auto, Canara Bank, Ceat, IOC, Tata Steel, TechM, ACC, HPCL, JSW Steel, and Havells, Axis Bank and L&T Finance will publish their quarterly results.
Analysts predict that the interest rate decisions of the Bank of Japan (BoJ) and European Central Bank (ECB), in addition to the US GDP statistics, will affect market dynamics on a macro level.
Also Read: Q3 results this week: L&T Finance, Pidilite Ind, Adani Power, IIFL Securities, Zensar Technologies, Axis Bank and more
Share Marketing Tips For This Week
Nifty 50 weekly price action resulted in a bearish candle, indicating breathing near live highs led by profit booking in heavyweight private banks. In the upcoming truncated expiration week, we expect an extension of consolidation with stock-specific action that would help the index form a higher base after the 17-% rally seen over the last two months. Thus, buying dips would be the sensible strategy to adopt as we expect last week’s panic low of 21,300 to hold and the index to show a rebound to the 22,000 mark ahead of the budget, advised Dharmesh Shah, Assistant. Vice President (AVP), ICICI Securities.
The Bank Nifty corrected 3%, indicating a pause in upward momentum. In the upcoming expiration week, we expect volatility to remain high. Thus, holding last week’s low of 45,400 would keep withdrawal options open to 46,800, with public sector undertaking (PSU) banks expected to outperform, Shah said.
Also Read: Stocks to Buy: RITUS and Oil India among top picks, here’s why
Stocks to Buy This Week – Dharmesh Shah
On stocks to buy this week, Dharmesh Shah recommended two stocks: GAIL and Bank of Baroda.
Here we list details of Dharmesh Shah’s stock recommendations:
1. Buy GAIL (India) Ltd in the range of ₹164–167 for the purpose of ₹184 with a stop loss of ₹156.
2. Buy Bank of Baroda in the range of ₹230–235 for the purpose of ₹252 with a stop loss of ₹222.
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More or less
Published: 22 Jan 2024, 08:25 IST