Stories
Market Burns: Bond Yields, Crude Oil Ignite Sell-Off; Shrikant Chauhan Reveals Stocks to Buy
- •Nifty hits 6-month low, Bank Nifty slips 800 points; investors lose ‘8.5 lakh crore rupees’ amid market turmoil.
- •Crude oil at $100, 10-year US bond yield at 5.33% fuel market decline.
- •Auto, realty, and consumer durables sectors see sharp falls; Nifty Auto down over 4%, Bajaj Auto plunges 8%.
- •Shrikant Chauhan advises shorting Nifty below 22500 with a stop loss of 22600 and targets of 22150.
- •Kotak Securities' Shrikant Chauhan recommends buying BHEL and HDFC Bank, while advising to sell Trent.
Key Questions Answered
Shrikant Chauhan notes that Nifty has broken below the critical 23,000 level and faces further downside risk. If the 22,500 support level fails to hold, the index could potentially drop to its previous low of 22,150. Conversely, if 22,500 holds, an oversold market bounce could trigger a minor pullback, though shorting below 22,500 with a stop loss of 22,600 is currently advised.
Shrikant Chauhan recommends going long on Bharat Heavy Electricals (BHEL) as it exhibits strong relative strength around Rs 420-422, targeting Rs 440 with a Rs 410 stop loss, and suggests buying HDFC Bank around Rs 713 with a positional target up to Rs 800. Meanwhile, investors are advised to short Trent from current levels around Rs 2606-2610 for a target of Rs 2550 following upcoming business updates.
The market dropped sharply due to soaring crude oil prices reaching $100 and the 10-year US bond yield climbing to 5.33%, wiping out Rs 8.5 lakh crore of investor wealth. Nifty Auto led the losses with a more than 4% drop—exacerbated by weak sales figures from Bajaj Auto and 52-week lows for M&M, Maruti, and Escorts—while realty and consumer durables declined by about two percent.
