No sign of fatigue in markets, Sensex breaches 55,000 for the first time

Domestic equity market benchmarks BSE Sensex and Nifty 50 were trading at record high levels on Friday. BSE Sensex claimed 55,000 for the first time in history and the Nifty 50 index topped 16,430 levels. Mehul Kothari of Anand Rathi spoke to Money9 to share insights on the strategies investors must adopt in the current scenario.

“There is euphoria in the markets, the way Nifty has cleared 16,400 is great, but in hindsight for traders this phase has been difficult. The broader markets have also corrected. Also what we are seeing is that beneath the surface there is pain. One should be very stock specific in current markets. We had earlier said that beyond 16,400 there could be a correction in markets, while the index level is not showing that, many stocks have seen the fall”, he said.

He also believes bargain hunting in stocks will begin now as a strategy.

Stock Recommendations

LIC Housing Finance | Buy | Target: 445 | Stop Loss: 375

Zee Entertainment | Buy | Target: 200 | Stop Loss: 175

RIL | Buy | Target: 2300 | Stop Loss: 2000