Indian Markets Close Firm but Markets Could Face Small Correction

Indian Markets Close Firm but Markets Could Face Small Correction

Indian markets closed positive on Wednesday but a correction in near term can’t be ruled out. The sentiment in local markets was positive this morning but the trade was dampened by higher inflation in the UK, which led to decline in European markets. US markets opened negative with Nasdaq closing nearly 1.2 percent lower. Indian markets closed marginally higher with BSE Sensex at 63,523 and NSE Nifty at 18,856. FIIs were net sellers for the first two days of this week.

The delay in monsoon in certain regions is also a cause of concern for Indian markets. Many stocks have witnessed a sharp upward movement in the recent trading sessions and they are looking overvalued. Pharmaceutical major Lupin registered 7 percent gains as the company received US FDA approval for Spiriva Generic version. Piramal stock ended strong after selling stake in Shriram Finance. Shriram Finance stock gained 11 percent after stake sale transaction.

LIC Housing Finance closed nearly 4 percent higher in today’s session. Market analyst Aditya Agarwala suggested BUY Call for LIC Housing, as reported by TopNews earlier.

Power PSUs PFC and REC touched yearly highs in today’s trading session. Both the stock have gained nearly 40 percent during current year.

Sameet Chavan from Angel One has suggested BUY Call for Lupin, LIC Housing Finance and Max Financial. As per Chavan, short term traders can BUY LIC Housing at current price for target of Rs 425 with Stop Loss at Rs 392. Max Financial can be bought with target price of Rs 780-785 with Stop Loss at Rs 720. Chavan has suggested BUY Call for Lupin at current price for target of Rs 950 -980.

Commenting on the market action today, Vinod Nair, Head of Research at Geojit Financial Services, said, “UK CPI inflation came in hotter than expected, adversely affecting investor confidence. Despite hitting record highs, the domestic market failed to sustain its upward trajectory due to prevailing concerns over global issues and a delayed monsoon.”

Analyst Views: