Stock market analyst, Vishwas Agarwal stated, “If institutions feel the pressure due to hike in CRR by the Reserve Bank of India (RBI), then the market may see the BSE Sensex falling to 15,950 or even lower levels of 15,750. But a pipeline of major corporate results may not allow panic selling in the market.”

Welcoming the RBI move, Mr. Agarwal stated that the CRR hike was a crucial step to control increasing inflation.

He expects strong recovery in the equities in the near term once the inflation levels get stabilized.

He also stated that the banking, auto and real estate stocks will have an impact because of CRR hike.

BSE 16,786 and 17,150 levels is essential target if market trades above 16,350 and under this the stock market will be range bound in 15,950 to 15750 levels, he said.

Mr. Vishwas suggests buying following stocks in case of heavy panic selling in the market over the coming week that has possibility to make 15-20% gains within a month: -

Reliance Industries, Essar Oil, Reliance Capital, Reliance Energy, Neyveli Lignite, Sasken Communications, Petronet LNG, Century Textile and Adlabs.