Avoid aggressive buying in markets: Devang Shah, Angel Broking

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Indian markets have been trading higher on Wednesday following a positive momentum in Asian peers. Metals, IT and banking sectors are logging in sharp gains. Heavyweights Infosys, RIL, Kotak Bank, and TCS are supporting the benchmarks, however, experts still see markets trading only in a tight range for a few more sessions.

Devang Shah, Technical Analyst at Angel Broking spoke to Money9 and said, “Markets in the last few trading sessions have been witnessing selling pressure at higher levels and also have been seeing a bounce every time they hit support levels. While the short term trend is positive, one must avoid aggressive buying.”

He also believes that Nifty Bank which has so far underperformed but is now finding its support and may see a bounce from here. He says that investors can go long on the Nifty Bank.

“Among sectors like IT and pharma have outperformed. Metal sector has again started to move on the upside and I believe one can look at Tata Steel for upside form current levels”, said Shah.

Ahead of the auto sales numbers tomorrow, Devang has suggested investors to keep a stock specific approach.

“Bajaj Auto in the two wheelers apace looks attractive. Also Bharat Forge is showing reversal in trends and can be looked at on the long side”, he added.

Stock Recommendations

HUL | Buy | Target: 2580 | Stop Loss: 2435

Sun Pharma | Buy | Target: 705 | Stop Loss: 660

Chambal Fertilizer | Buy | Target: 326 | Stop Loss: 299