Maruti Suzuki, DLF, and more: Experts recommend these 15 stocks after bloodbath on Dalal Street

However, only time will tell whether it is just a relief rally or the market finally has bottomed out. 

Market experts are of the opinion that the recent stock market crash has created an opportunity for long-term investors as they can add quality stocks to their portfolio. In fact, they also believe that new investors could make their portfolios in the recent sell-off.

Speaking on what these early trends signal at the stock market today, Aditya Gaggar, Director at Progressive Shares, said, “By breaching the psychological level of 19,000 in the morning trade itself, bears showed their intent but bulls took charge with a swift recovery in the mid and smallcaps. With three black crows candlestick pattern (bearish), the maximum damage has already been done and the markets are currently in the oversold territory. Pullback/bounce or a relief rally is warranted and an early indication from the GIFT Nifty suggests the same; however, sustainability at the higher levels will be a key factor to watch out for.”

Gaggar went on to add that Nifty 50 and Bank Nifty today stand at their 3-year-old trendline support, which is also indicating a reversal.

“The immediate support arrives at 18,830 and 42,000, respectively, while a higher side is capped at 19,040 and 42,700. After a steep fall, mid and small-cap indices have made a bullish candle which suggests that a short-term bottom has been placed,” the expert said, adding, “PSU banks and realty have made a bullish hammer pattern which indicates a trend reversal. “

Advising long-term investors to take advantage of the recent stock market crash, Saurabh Jain, Vice President — Research at SMC Global Securities, said, “For long-term investors, this is an ideal time for portfolio overhauling. They should add quality stocks available at discounted price.”

Asked about the segments where one can find such stocks, Jain said, “One can look at segments like auto, realty, FMCG, capital goods, banking and hotels. In fact, those who are mulling to enter stock market – this is an opportunity for them to create one’s stock portfolio by adding quality shares from above-mentioned segments.”

Jain listed out the following 15 shares from different categories:

Auto: Maruti Suzuki India Limited and Sona BLW Precision Forgings.

Real Estate: DLF, Prestige and Sobha.

FMCG: Godrej Consumer Products, Tata Consumer and ITC.

Capital Goods: Larsen & Toubro or L&T, Polycab and Jyothy Labs.

Banking: Axis Bank and ICICI Bank.

Hotels: Chalet Hotels and Indian Hotels Company or IHC.

Portfolio suggestion

For small retail investors, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said that one can make a portfolio from five to six above mentioned stocks as well. He said that if an investor is unable to buy all 15 mentioned shares, they can try adding or accumulating shares of DLF, ITC, LT, Polycab, Axis Bank and ICICI Bank.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 27 Oct 2023, 11:11 AM IST