Benchmark indices are trading near day’s low weighed down by financials, capital goods and oil shares.
Investor sentiment was hit adversely after minutes from the Federal Reserve's last meeting signaled US stimulus may be reduced in coming months. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy.
At 1400 hrs, the Sensex was down 323 points at 20,311 and the Nifty was off almost 99 points to trade at 6,024.
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So, what are the stocks that you can buy today to buck the downtrend. Mohit Gaba, Independent technical analyst & trader tells Manu Kaushik what stocks he is betting on, to buck this weak trend.
SmartInvestor : Mohit, market breath is very weak. Benchmark indices are off over 1% now. Where is this downturn headed. What are the key levels to watch out for?
Mohit Gaba : 5980 - 6000 are the levels to watch out for, the Nifty was in a broad range of 6000 - 6350 and it now looks likely that it will break through the lower end of this range, we could see 5800 again soon
SmartInvestor : What heavyweights would you recommend shorting right now?
Mohit Gaba : HDFC, Reliance, Infosys
SmartInvestor : Banks are under heavy fire today. Would you recommend a buy on dips strategy. If yes what counters would those be?
Mohit Gaba : so far there is no sign of strength on the banks, and there is a possibility of further down side on them, hence i would wait before i buy
SmartInvestor : Pick for us three stocks to hedge against the downturn today?