Don’t take risk on index, rather go for stock selection: Jay Purohit

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The Indian benchmark equity indices traded flat with a positive bias in Wednesday’s morning deals after a volatile start to the session.  Benchmark Indian equity indices opened over 0.23% higher on Wednesday. The Sensex was at 52,470.20, 0.23% at 10:20 am while the Nifty was at 15,735.95, down 0.23%. On the sectoral front, buying was witnessing in the IT, metal stocks, while selling was seen in the oil & gas and power names.

In the broader markets, the S&P BSE MidCap index was flat while the SmallCap index ticked up 0.2% Among buzzing stocks, United Breweries in focus today after CCI okayed Heineken’s additional equity stake acquisition in the company. IDBI Bank share price surged 6% in the early trade on June 23 on report the government may sell 26 percent stake in the company.

Jay Purohit, Technical & Derivatives Analyst, MOFSL said, “The markets are in a consolidated phase, where we are seeing a range-bound move continuing from the last couple of days. On the upper side 15,900 is acting as a major hurdle. 15,500 is acting as a major support. I believe stock-specific action may continue today as well. Investors must not take too much risk on the index and rather go for stock selection.”

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