Thank you, readers! That's all from CNBCTV18.com's live market coverage on May 11, 2022. Stay tuned for other updates on our website: CNBCTV18.com.
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Positive on consumption theme: Marcellus Investment's Pramod Gubbi
"We are not a thematic investor, we are a bottom up investor. We try and find companies with very clean governance with resilient business models and with sustainable competitive advantages. It so happens that you find a lot of these companies in the in the consumer sector, partly because some of these competitive advantages are truly sustainable around distribution and supply chain efficiencies, particularly in a complex market like India, which is not just geographically vast, but also diverse in terms of demand patterns," Pramod Gubbi, Co-Founder of Marcellus Investment Managers, tells CNBC-TV18.
He is positive on such businesses across both staples: Discretionary not just staples and discretionary across financial services particularly with a retail-focused play. "Consumption can be beyond just FMCG or consumer durables for us," Gubbi adds.
Buy MCX crude oil May futures, target Rs 8,100: Motilal Oswal Financial Services' Amit Sajeja
Amit Sajeja, VP-Technical Commodities and Currencies Analyst-Commodities at Motilal Oswal Financial Services, recommends buying MCX crude oil futures at Rs 7,750 for a target of Rs 8,100 with a stop loss below Rs 7,600.
"MCX crude oil is likely to find support near Rs 7,750 and a short-covering move towards the immediate barrier of Rs 8,100 looks possible. Buying on dips is advised from a short-term perspective. From a medium-term horizon, however, the bias will be more clear on a breakout on either side of support at Rs 7,300 and resistance around Rs 8,400," he tells CNBCTV18.com.
Largecaps largely stable, some capitalisation in midcaps, smallcaps: Capitalmind's Deepak Shenoy
"Even some of banks are positive as well. I think opportunities will continue for the next three or four months. Because until we know the extent of the rate hikes, there will still be pressure on stocks. If you're looking at a long-term buying opportunity, the next few months are probably a good time to start picking stocks," Capitalmind Founder Deepak Shenoy tells CNBC-TV18.
"We've been doing that throughout but we are just changing the constitution of some of our stocks, so that we can get more into more attractive players. We're still not yet in ‘sell everything else and buy stocks’ territory, but I think we're starting to seeing the signs of getting there soon," he adds.
Expect some more correction or consolidation in IT stocks: Quantum Securities' Neeraj Deewan
Neeraj Deewan, Director at Quantum Securities, expects some more correction or consolidation in IT stocks. "Though largecap IT has corrected and valuations are becoming little better in stocks like Infosys, but the margin pressure should stay for a couple of more quarters. The kind of attrition levels that we have seen will also put pressure on wage bills and impact the margins," he tells CNBC-TV18.
His advice to long-term investors: "Look for more consolidation and a little more correction to happen, and then accumulate over the next couple of quarters.”
Market At Close | Banking stocks help Sensex, Nifty50 trim day's losses
Here are some highlights:
--Financial stocks support market
--Midcap index recovers more than 500 points from day's low
--ONGC top Nifty gainer as crude prices rise more than three percent
--Cipla earnings miss Street estimates but positive commentary helps stock rise one percent
--Asian Paints declines but two percent off day's low on mixed commentary post-earnings
--HDFC, HDFC Bank, Axis, ICICI Bank lift Nifty
--ITC, Infosys, HCL Tech drag index
--City gas companies post healthy gains on strong quarterly numbers; Gujarat Gas up six percent, MGL three percent
--SRF rises six percent on positive commentary, brokerage upgrade post-earnings
--Indiabulls Housing falls 20 percent, top midcap loser
--GNFC falls 14% as TDI prices slip
--Dixon Tech, Motherson, Chambal, Can Fin, L&T Tech among top midcap losers
--Market breadth firmly in favour of bears, advance-decline ratio at 2:9
Sensex, Nifty50 end volatile session in the red
Both headline indices finish the day half a percent lower. The 30-scrip index ends 276.5 points below the flatline at 54,088.4, having swung within a 1,079.3-point range during the session.
The broader Nifty50 benchmark settles at 16,167.1, down 73 points from its previous close, having briefly slid seven points below the 16,000 mark in intraday trade. (Read more on the closing bell)
Rohit Srivastava of Indiacharts says sell-off is not over yet
According to Srivastava, there might still be a further downside, so one shouldn't really pre-empt that the market or any particular stock has bottomed out just because it is oversold.
He explained that during bear markets, what ends up happening is a large part of declines actually end up having in oversold mode. So, especially for traders who are trying to bottom fish this market, they probably get their hands, handed to them. "So they shouldn't really try to do that - wait for things to settle down. I still think there could be a lot more downside. In fact, we are seeing the small cap index already break the March lows, I will not rule out that the Nifty eventually does that," he said.
Ethos IPO to open for bidding on May 18
WeekendInvesting.com founder Alok Jain's 4 themes in current market scenario
--Auto stocks have over the last many years consolidated, and really did not go up so much with the prior run. So they don't have much to lose and it seems some undercurrent is coming back to them and they are relatively less damaged than others.
--FMCG is another place where defensive money moves when markets are volatile.
--Public sector enterprise is another sector where there is more hope of more divestments coming in, given that the government situation is getting tighter and combined with that energy stocks, which have been doing very well. I think that is one step pocket to look at.
--A wildcard of course, maybe IT stocks which have actually dropped quite a bit, and there may be a good bounce due there.
Losses in IT stocks drag benchmarks lower
Tech stocks were suffering the most losses with sector scrip Nifty IT slipping more than 2 percent. L&T Tech Services, MPhasis, and LTI were the worst performers in the pack. Here's how other stocks fared.