Stock for long term: The frontline index Nifty 50 closed down by nearly half a percent on January 17, weighing on investor sentiment. The main reasons for the decline include weak performance of major companies in the banking and IT sectors. Shares of heavyweights like Infosys, ICICI Bank, Axis Bank, HDFC Bank and TCS in particular suffered losses, dragging down the market.
The lower-than-expected third-quarter earnings and cautious investor sentiment surrounding the upcoming budget have added to the market concerns. In addition, foreign institutional investors (FIIs) sold Indian equities worth nearly ₹46,500 crore in January, indicating foreign capital outflows and market volatility. All these factors combined have had a negative impact on the market and increased investor discontent.
Sumeet Bagadia recommends 4 Stock for long term
Sumeet Bagadia, Executive Director, Choice Broking, commented on the recent market situation, noting that the current market sentiment is weak. For the market to turn positive, the Nifty 50 index needs to remain stable above the 23,500 level.
Bagadia said that investors should be more careful in stock selection during the third quarter earnings season and invest in stocks that are in a strong position on the technical charts. He said, “Although the Nifty 50 index closed above 23,200, the overall market is in a negative bias. Only after a final break above 23,500 will the sentiment on the street improve.”
Bagadia advised taking a stock-specific approach and focusing on stocks that are looking good on the technical charts. He recommended buying several stocks on Monday, including IRB Infrastructure Developers, Sagardeep Alloys, Medico Remedies and Lloyds Engineering Works.
Stocks to buy for long term
1. IRB Infrastructure Developers
- Buy at: ₹54.89
- Target Price: ₹59
- Stop Loss: ₹53
2. Sagardeep Alloys
- Buy at: ₹33.91
- Target Price: ₹36.5
- Stop Loss: ₹32.5
3. Medico Remedies
- Buy at: ₹65.52
- Target Price: ₹70
- Stop Loss: ₹63
4. Lloyds Engineering Works
- Buy at: ₹83.72
- Target Price: ₹90
- Stop Loss: ₹80
Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Please consult an expert before making any related decisions.