Demystifying current stock market situation for retail investors: The power of 5 top brokers

Jun 30 2014, 14:14 IST
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Having hit a high of 25,725 earlier this month following the euphoria around the election results. (Photo: Thinkstock) Having hit a high of 25,725 earlier this month following the euphoria around the election results. (Photo: Thinkstock)
SummaryHere are advisory to retail investors from five leading broking houses in the country:

range of mid-cap and small cap stocks could perform well going forward. Retail investors who hold stocks or have invested over the last couple of months can continue to hold them and also look to increase their exposure over coming weeks.

On the other hand, investors who have not had a good experience in the past in direct equity or are first time investors could look at investing in ETF (Nifty, Midcap, Bank) or Equity Mutual Funds. Risk averse investors could invest in hybrid or balance funds and benefit out of both equity and debt appreciation. Selective exposure to primary markets may also be taken.

Deepak Jasani,

Head — Retail Research

Kotak Securities

The market closed almost flat on a weekly basis but remained choppy during the week between the broader range of 7,440 and 7,595. These levels are going to act as major trend decider levels in the coming weeks. Above 7,595, we can expect Nifty to reach 7,700 but in case it breaks 7,440 then it may fall to 7,300 levels.

However, our broader view is that the markets are into strong hands and major dips can be seen as an opportunity for long term investors. Till the market doesn’t break 7,200 level, it will trade strong. We like banks, capital goods and infra space with a medium to long term view. We like SBI, BOB, ICICI Bank, L&T, Voltas, Siemens and ABB.

Metal and cement stocks are into sideways consolidation phase but eventually they are going to do well and our preferred picks are Sesa Sterlite and TATA Steel. PSU stocks are still undervalued and if the government takes specific stance then they can be multi baggers. HPCL, BPCL and ONGC are potential investment opportunities.

For retail investors and traders, our advice is to stick to investments and buy into secondary markets on a regular basis. Select one or two frontline index heavy weight stocks and remain invested in them. Buying at each dip is advisable. Even buying into pharma and technology stocks is advisable due to their defensive nature and Sun Pharma, Lupin, Biocon, Infosys and Tech Mahindra can be looked into.

Shrikant Chouhan,

Senior VP — Technical Research

Geojit BNP Paribas

Indian equity markets are moving up on high expectation on reform-oriented budget and Nifty is likely to move above 7,800-8,000 levels in the short-term and in the medium term it can even move up towards 10,000-10,500 levels. Foreign Institutional Investors (FII) are optimistic on

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