The Indian share market opened on a downside on Monday as investors reacted cautiously to the latest Hindenburg Research report alleging SEBI chief and her husband for offshore investment to benefit from Adani group shares. The Nifty 50 index corrected around 85 points, while the BSE Sensex shed nearly 300 points in early morning deals on Monday. The Bank Nifty index also lost over 200 points during the morning session, reflecting the initial negative sentiment in the market.
Stock market experts have analyzed the situation and provided insights on how investors can navigate through the current scenario. They believe that the market has opened with a downside gap but the frontline indices are still above their crucial support levels. The correction seen on Dalal Street is considered minimal, with more profit-booking happening rather than a significant fall induced by the Hindenburg Research report. Intraday traders are advised to maintain a stock-specific strategy and look for buying opportunities on every dip. Quality stocks with solid fundamentals in sectors like pharma, consumer durables, and banking are recommended over other stocks for both intraday traders and medium to long-term investors.
In response to the Hindenburg Research report, Saurabh Jain, Deputy Vice President of Equity Research at SMC Global Securities, emphasized that the correction should not be solely attributed to the news. He suggested that investors maintain a buy-on-dips strategy and focus on quality stocks with strong fundamentals. Avinash Gorakshkar, Head of Research at Profitmart Securities, echoed similar sentiments, advising investors to adopt a stock-specific approach and consider companies that have shown strong quarterly results in recent quarters.
Both experts emphasized the importance of implementing a strict stop-loss strategy while taking new positions in the current Indian stock market to manage risks effectively. Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, highlighted the important support levels to watch, with the Nifty 50 index maintaining a strong support zone near 24,000 and the Bank Nifty above the crucial 100-DEMA support of 49,500.
For investors looking for potential buying opportunities, Saurabh Jain recommended considering shares of Canara Bank, KEC International, NHPC, United Spirits, Heritage Foods, and Natco Pharma. However, it is essential to note that the views and recommendations provided by individual analysts or broking companies are not endorsed by Mint, and investors are advised to consult certified experts before making any investment decisions.
In conclusion, the current market scenario presents challenges but also opportunities for investors. By following a strategic approach, focusing on quality stocks, and maintaining a disciplined risk management strategy, investors can navigate through the volatility and potentially capitalize on the market movements for wealth creation.