IREDA, Nykaa & Bajaj Finance shares: Kranthi Bathini of WealthMills weighs in on investment strategy

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, on Thursday expressed a cautious yet optimistic stance on the Indian equity markets. The market expert noted that the Nifty50 index has established a new long-term support level around 25,000, up from the previous 24,500.

Bathini emphasised that the market is currently in a "wait and watch" phase, with future movements contingent on developments in the India-US trade negotiations and the ongoing earnings season.

He stated, "Whether we are going to witness a leg-up rally from here? That all depends upon the outcome of the India and US trade deal and also any blockbuster results from the earnings season." The expert further added, "If both could give positive news, definitely markets are headed for new highs."

Regarding FSN E-Commerce Ventures Ltd (Nykaa's parent company), Bathini expressed reservations about its valuation. He remarked, "From an investment perspective, I'm not bullish about the company. At the same time, I'm not comfortable with the valuations of the company."

The market specialist advised investors to consider exiting the stock during rallies, stating, "Any rally, I would be the seller in the stock." He highlighted that the company needs to deliver stronger financial results to justify its current valuation.

On Bajaj Finance, Bathini recommended a medium- to long-term investment approach, suggesting that investors accumulate the stock on dips. He indicated that the company's strong fundamentals make it a suitable candidate for long-term holding.

Regarding Indian Renewable Energy Development Agency Ltd (IREDA), Bathini advised long-term investors to hold onto their positions, while suggesting that those focused on short-term price movements might consider exiting during rallies.