Diagnostic stocks were buzzing in intraday trade on May 16 while the market benchmark the Sensex traded nearly a percent higher.
Shares of Dr Habeebullah Life Sciences (up 7%), Vijaya Diagnostic Centre (up 5%), Aspira Pathlab & Diagnostics (up 5%) and Krsnaa Diagnostics (up 4%) traded with healthy gains. On the flip side, shares of Metropolis Healthcare (down 7%), Dr. Lal PathLabs (down 6%) and Thyrocare Technologies (down 6%) suffered losses.
Sensex traded in the green, jumping more than 600 points in morning trade as investors embarked on bargain hunting after the recent drubbing of the market.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services underscored Nifty is down 9% this year and the market is weak.
"In a bear phase there will be relief rallies, but such rallies are unlikely to sustain, given the relentless selling by FIIs. It is rational to expect more FII selling, particularly when the market stages relief rallies. It is important to appreciate the fact that FIIs are selling not because they are bearish on India but because US bond yields are attractive and the dollar is strengthening," said Vijayakumar.
"Since Nifty is trading at around 18 times FY23 earnings, valuations are not yet cheap. But there are pockets where earnings visibility is good and valuations are fair like financials, telecom, IT and construction. Long-term investors can start accumulating high-quality stocks in these segments," said Vijayakumar.
Analysts believe Nifty may find Strong support around 15,700, while on the upside 16,100 may act as an immediate hurdle for the index crossing above the same can attract fresh buying.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of MintGenie.