After ending weak in the previous week on global strong cues which indicated that recovery is at a reasonable pace, Indian indices could sustain some gains on Monday.
Now as per experts, the markets could continue to witness volatility unless Covid 19 threat continues to exists:
Now there is a advised to adopt a stock-specific approach and look at banking stocks as the sector is in oversold territory. Experts said banks with strong business outlook can provide a 3-5 percent upside in the short term. There is advised a 'buy' on stocks of SBI, ICICI Bank and Axis Bank once the market opens today (april 27, 2021).
What does oversold mean in a stock market?
It is a state when the price of a stock crashes too soon and quickly. As per Investopedia, it refers to a condition where an asset has traded lower in price and has the potential of a price bounce. An oversold condition can last for a long time, and therefore being oversold doesn't mean a price rally will come soon, or at all. Many technical indicators identify oversold and overbought levels.
"These banking stocks have strong fundamentals and in immediate short-term they can showcase 3-5 per cent upside movement", advises Avinash Gorakshkar, Head of research at Profitmart Securities said.
SBI, ICICI Bank and Axis Bank have strong corporate business outlook and they are expected to improve fast on the NPA front. So, these three banking stocks are expected to show sharp upside move in short-term", he added.
With regards to SBI "Giving important levels for the stock investors in regard to SBI stocks Ravi Singhal of GCL securities said, "One can buy SBI shares at current market price for short-term targets of Rs. 375, Rs. 400 and Rs. 425 maintaining stop loss at Rs. 310."
In respect of Axis Bank, buy is recommended at current price levels with a target price of Rs. 725 and Rs. 770.He advised investors to keep accumulating Axis Bank stocks till it is above Rs. 620. Singhal also advised investors to strictly maintain the stop loss at Rs. 620 while taking buy position in Axis Bank shares.
For stock market investors interested in ICICI Bank shares, Singhal advised them to buy ICICI bank stocks for the short-term target of Rs. 770.