3 Nifty Stocks That Are Close To 1-Year Low, Good Time To Buy?

It's not been the best of time for the markets this week, with rising bond yields in the US, adding to pressure on stocks in the global markets and also in India. Here are a few stocks that are

HeroMoto Corp

Name	1-year low	Distance from 1-year low	Current market price
HeroMoto Corp	2146	6.87%	2294

HeroMoto Corp is the largest motorcycle manufacturers in the world. The stock at a trailing p/e of 17 times is not very expensive. However, the results for the next few quarters are not likely to be good given volumes falling and price pressures continuing. The one good thing about the stock is the strong dividend yields of nearly 4.58%.

Sharekhan recently had a buy on the stock with a price target of Rs 3200, given its cheap valuations and robust plans in the electric vehicle space.

HDFC Bank

Name	1-year low	Distance from 1-year low	Current market price
HDFC Bank	1292	4.92%	1355

This is another stock that has been in the news for its merger with HDFC Bank. Heavy ownership by FPIs in the stock is leading to some selling pressure. However, the shares are rather cheap when compared to historical averages. Recently brokerage firm, Motilal Oswal had given a buy call on the stock with a price target of Rs 2050. There would probably be no brokerage that has a sell call on the stock. A great stock to buy for long term investors.

HDFC

Name	1-year low	Distance from 1-year low	Current market price
HDFC	2046	7.84%	2206

HDFC would merge into HDFC Bank in the near future. There has probably been some overhang in both these stocks on account of the same. This is one stock that is heavily owned by FPIs and again mounting selling pressure by these institutions has resulted in a sharp fall in the stock of HDFC. We believe that this is a stock to buy as valuations have turned attractive.

Word on the markets

We believe that one can buy stocks only on declines. Some of the pockets are expensive and only go for stocks with good fundamentals.

"Global cues like hawkish Fed commentary, rising inflation and bond yields, slowing economic growth, prolonged war in Ukraine and volatile crude prices is keeping markets uncertain. Continuous selling by FIIs and weak results by few heavyweights has further added pressure to the market. Now till Nifty remains below 17350 zones, it may see weakness towards 17000 and 16950 zones. Index is likely to remain volatile in the broader trading range with absence of follow up activities on both the side. We suggest selective buying in the market in resilient stocks where the quarterly result has been good despite the current uncertain scenario," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Disclaimer

Investing in equities poses a risk of financial losses and investors should understand the nature of the risk. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.