3 Good Stocks Rajesh Palviya Recommends as the Market is Weak
When the stock market is experiencing volatility and major corrections, it is good to come up with some strong stocks that are performing robustly even in a declining market. Such share are being perceived to be opportunities that can be explored by investors that are seeking stable and growth stocks.
The stocks suggested by Rajesh Palviya are worth discussing further and getting an explanation of why they are being dubbed as shining stars in the current turbulent market.
1. Bharat Electronics Ltd (BEL)
Rajesh Palviya has faith in Bharat Electronics Ltd which is a large company in defense and electronics industry. BEL according to him has been displaying technical strength continuously in the charts. The stock has been establishing itself in a good higher-high, and higher-low pattern, which can be taken as a bullish indicator in the technical study.
The analyst feels that BEL has an advantage in its high order book, firm fundamentals and due to its paying more attention to defence manufacturing in India. Although there is selling pressure on the larger indices, BEL still trades at its present short term support area and this goes to show the existence of buying pressure.
2. Cummins India Ltd
Another good choice is Cummins India that occupies a leading position in the industrial and power solutions field. According to Palviya, the share is experiencing a breakout in the middle of a multi-week consolidation period and the start of a new up-trend.
Cummins is also catching up with its good export record and potential requirements of infrastructure. Palviya added that there is also a volume activity at this breakout level which further lends more credence to this technical movement. It may be a stock worth looking out in the medium to long-term perspective of the investor.
3. TVS Motor Company
TVS Motor Company is the third suggestion of Rajesh Palviya. Even after the adverse conditions in the auto industry, TVS has still managed to outstrip most of its market rivals. The share has also demonstrated the ability to rebound in the charts and is trading above critical moving averages and this indicates a positive sign.
Palviya ascertained the increasing demand of two-wheelers and the fact that TVS is already working on the electric vehicle segment is why it is a future-proof stock. Technically, price structure is on the side of the bulls and any loss a buying opportunity will be sought.
General Market Outlook
Palviya admitted that there are global headwinds in the stock markets such as interest rate concerns and profit booking of the strong rally. He has however, underscored that there are quality stocks that are performing well. At this stage investors are cautioned to concentrate on technically sound names, and not chase around on speculative counters.
FAQs
Q1: Why are these stocks taken to be strong in a declining market?
These stocks have good technical lines, good demand zones and good industry trends that makes them relatively immune to market corrections vis-a-vis other stocks.
Q2: Is the right time to invest in these stocks?
Rajesh Palviya believes that such stocks are bullish in terms of technical charts. Nevertheless, the risk profile of the investor ought to be taken into consideration and it should be done together with the financial advisor.
Q3:What is the holding period of these stocks?
They are medium-term position picks. They can be kept between a few weeks or two months depending on the condition in the market.
Q4: What must not be done in case of a market fall?
According to the experts, it is advisable to shun speculative or low quality stocks. It is more advisable to invest in fundamentally and technically good companies that have sound track records.
Q5: Are there sectoral tailwinds on these stocks?
Yes. BEL is supported by the demand in defense sphere, Cummins has benefited by the increase in infrastructure development, and TVS is capitalizing on the growth of EVs and improving sales of two-wheelers.
Disclaimer: The present article is grounded on the technical information provided by a market expert. Before making an investment decision, the investors are supposed to conduct their own research or acknowledge the help of a financial advisor.
