Traders should focus on stock selection: Jay Purohit

The Indian benchmark equity indices fluctuated between gains and losses in Wednesday’s morning deals, amid weak global cues. The S&P BSE Sensex traded flat around 52,810 levels and the broader Nifty50 index was holding near the 15,800-mark. Asian Paints, HDFC, and Bajaj Finserv were the top Sensex gainers.

Jay Purohit from Motilal Oswal Financial Services,  “Markets are witnessing selling pressure at higher levels, but there is still positive outlook as the dips are being bought into. We are seeing a broad based buying with mid and small caps outperforming. In the short term, we expect markets to trade in a range 15,900 -15,600 zones. Only a sustained move above 15,900 will see markets rallying again to 16,200 levels”

As for a strategy for traders, he said, ” Traders should stay on the sidelines on the index and focus on stock specific action.”

Stock Recommendations

HDFC Bank | Buy | Target : 1620 | Stop Loss : 1490

Bajaj Finance | Buy | Target: 6500 | Stop Loss: 6040

SIS | Buy | Target: 500 | Stop Loss: 440