Sensex, Nifty50 2% drop; All sectors in red; Bajaj Finance, Titan and Tech Mahindra drop 5%
HDFC Bank and ICICI Bank show strength: Siddarth Bhamre
Siddarth Bhamre, director of alternative investments and research at InCred Equities, said HDFC Bank and ICICI Bank were showing strength. “There was a huge period of short hedging at HDFC Bank in the last trading session. ICICI Bank is not correcting much and Reliance’s numbers have been good. We see another heavyweight like HUL supporting the market. It There are names from other spaces like metals and some of the computer names that are correcting, but we don’t see a substantial correction going forward Infosys was one of the stocks that dragged this market down. But again, the stock has reached its strong support zone; we have seen a 10% increase in open interest in the last trading session, which we believe looking at the stats and the price action, corresponds to long positions being added at lower levels,” he said.
The risk-reward ratio is not favorable for creating new short positions, he said. “It doesn’t mean you get adventurous, but just wait and watch this week. Although it’s truncated (holiday January 26), it won’t lead to any crucial levels that aren’t tested or challenged. So let’s wait and watch There are a lot of stock-specific long and short ideas and we would be long in the names we mentioned. There are names like Bajaj Finserv and Bajaj Finance, which show weaknesses. There are names of cement that show weaknesses, and can be traded with a negative bias. Overall, I wouldn’t be too negative,” he added.