Nifty 22,300 key support; Buy quality stocks in tranches amid volatility, says Shrikant Chouhan of Kotak Neo

On Monday, the market opened flat near 22,600 but declined towards 22,350 following profit booking.

Chouhan identified 22,300 as a key support level for the Nifty. He said a break below this level could push the index towards 22,150, a level it tested last week. A further decline could trigger stronger selling pressure across the market, he added.

Advising investors on the current market conditions, Chouhan recommended buying fundamentally strong companies at key support levels in phases rather than investing the entire amount at once. He also said the ongoing sideways movement presents an opportunity for Systematic Investment Plan (SIP) investors.

On sectoral opportunities, Chouhan identified defence, automobiles, internet-based businesses and software companies, including new-age technology firms, as key sectors to watch.

He noted that profit booking has affected defensive sectors such as pharmaceuticals ahead of the upcoming second-quarter earnings announcements.

Chouhan said market valuations and earnings indicate attractive levels for investors with a medium- to long-term investment horizon. He advised investors to focus on company fundamentals while making investment decisions. (ANI)

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