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Nifty 50 Floor at 22,400 After Wednesday's 2% Crash: Choksey
Deven Choksey says the Nifty 50 floor is 22,400 and the upside 26,400 over two months. He advises retail investors to use advisors and buy dips, calling volatility the best friend.
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Indian equities suffered their worst session since March on Wednesday. The Sensex lost 1,677 points, or 2.15%, to 76,503. The Nifty 50 fell 516 points, or 2.12%, to 23,882. Every single Sensex stock finished lower. The India VIX jumped nearly 25%.
The trigger was a new escalation in the Strait of Hormuz. President Donald Trump declared the US-Iran ceasefire over after Iran struck three tankers. Brent crude jumped nearly 4.7% in a single session to $77.64 a barrel, a two-day surge of almost 8%.
The rupee slipped 20 paise to hover near 95.16-95.20 against the dollar.
Deven Choksey, managing director at D R Choksey FinServ, told Rediff.com that the sell-off is a buying opportunity. The fundamentals of the Indian growth story remain untouched, he said. "Volatility is going to be part of the market. Reality is going to be continuing volatility. There is no change in that," Choksey said. "Volatility is the best friend of the investor. Market, if fundamentals are strong and when the opportunity on the pricing front is available, then the volatility is the best friend of investors." His formula: "Buy on dips, buy on dips and sell on rise."