Is Nifty heading towards 5000? What should be your action plan ? What stocks to accumulate for the next few weeks?

Increased Corona cases and fear among Super nations like the US and UK, there seems to be no relief so far.

Here is the graph of Coronavirus impact globally:

Covid Cases Nifty

Source: Trading view

Globally more than 1 million cases of COVID 19 confirmed cases.

This along with the slow economic start for the year 2020 have impacted the stock market in such a negative way that this is the worst fall of markets globally since the inception of the stock market.

The recovery in the market as experts predict is mostly due to profit booking and we can expect a bigger slide if conditions don’t get better ahead.

The shut down has impacted India also as GDP drastically declined and many SMEs are under huge losses and many employees didn’t get their pay.

Here are the stocks whose business is directly impacted due to Lockdown and investing in them can build you a good portfolio:

1. PVR: Its very obvious the business of this stock is by movies, with lockdown now, its safe to say that this stock had absolutely zero business and we can expect the same to continue for at least next 3 weeks, this has been discounted in the stock price as prices steeply fell down from 2000 to 1000 in just 35 trading sessions. (Yes the stock is available at 50% discount)

Covid Cases Nifty PVR

So accumulating this stock is a good choice as the entertainment world will boom after lockdown with many movies to be released after the situation stabilizes, this is one stock you can bet on.

2. Our 2nd pick is Bharti Airtel

With people switching from Jio to Airtel and excessive usage of the internet during this lockdown things can get this stock a good quarterly gain. So accumulating Bharti airtel at this price is a good investing opportunity.

Covid Cases Nifty Bharti Airtel

3. Our Third pick is India’s biggest bank HDFC BANK

Globally more than 1 million cases of COVID 19 confirmed cases.

Covid Cases Nifty HDFC Bank

The reason is obvious, the leading back available at such a reasonable price of 830 is worth accumulating in your portfolio. As when economy would stabilize, this would be the first one to lead the banking sector.

4. After the biggest bank of India, its time to talk about the biggest company in India, Reliance.

Covid Cases Nifty Reliance

Reliance saw a hit in its business due to less consumption of oil and its other products due to lockdown. Also, migration of users from Jio to Airtel has a small impact on the stock. and is heavyweight of Nifty and Sensex.

Accumulating this can balance your portfolio as 1000 is a good price for reliance.

5. IRCTC: Indian Railways is the most impacted stock due to lockdown, all employees getting paid and converting train into beds for COVID patients means this government-driven stock is extensively using its funds and has Zero business from last 2 weeks. Resulting in lower circuits of stock and stock went down by 50% from 2000 to 1000 approx

Covid Cases IRCTC

As the backbone of the country, this stock without a doubt is very good to pick to invest at the current price. Those who missed it in IPO, don’t miss it again now.

Our Final Advice:

The probability of Nifty heading down in the coming weeks is higher. Hence it is suggested to accumulate these stocks in SIP mode. i.e invest a little in all the stocks and keep averaging every 7- 10 trading sessions. We can expect a very good return on these stocks by 2022.

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