At least 14 popular stocks from the large cap and midcap segments have scaled their fresh 52-week low levels amid the ongoing volatility in the domestic equity market in March. Data showed that players including Reliance Industries, Page Industries, Cipla, Laurus Labs, Gland Pharma, Biocon, Crompton Greaves Consumer Electricals, Muthoot Finance, Motilal Oswal Financial Services, Relaxo Footwears, Ipca Laboratories, Gillette India, Bayer CropScience and Tata Consumer Products are hovering at their 52-week low levels.
However, market watchers believe that investors can consider quality stocks which are available at discounted prices. Of late, a couple of factors including rising inflation, sustained outflows by foreign institutional investors (FIIs) and the recent financial turmoil in Silicon Valley Bank weighed market sentiment on Dalal Street. On a year-to-date basis, the benchmark BSE Sensex has declined over 4 per cent till March 13.
While sharing his views on the stocks which are available at 52-week low levels, Arvinder Singh Nanda, Senior Vice President, Master Capital Services, “For investment purposes, it’s quite recommended to add them to your portfolio as the recent fall had been attributed to some news headwinds and it could be a good time to accumulate large-cap stocks which are available currently at discounted prices. We also believe that midcaps are likely to outperform the market in the days ahead.”
Ajit Mishra, VP-Technical Research, Religare Broking said, “One shouldn’t see a new 52-week low or record low as a buying opportunity until we have a strong rationale in place.”
From the list of stocks which are available at 52-week low levels, G Chokkalingam, Founder, Equinomics Research and Advisory is positive on Reliance Industries. “We believe that it is emerging as a mini economy in itself and it is likely to reward investors substantially in the next 4 years through unlocking value from telecom, retail and renewable energy segments.”
Brokerage Sharekhan last month gave a ‘Buy’ rating to Relaxo Footwears with a target price of Rs 930. Likewise, B&K Securities is bullish on Crompton Greaves Consumer Electricals with a target price of Rs 363. “Demand for Crompton Greaves products are expected to gradually normalise in the upcoming summer season,” B&K Securities said in a report.
On asking which stocks are looking attractive at present levels, Mishra said, “Within the Nifty 50 basket, only 16 stocks are trading above their long-term moving average. For short-term trading, it is always prudent to look for stocks that show relatively higher strength during the corrective phase. Out of those 16 names, participants can consider accumulating stocks like ITC, L&T, M&M, Axis Bank, Sun Pharma and NTPC on dips.”
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