Trading sentiment remains weak in near term; here are 3 stocks that can give double-digit returns

We believe that for companies with strong growth prospects and sound fundamentals, it would be prudent to accumulate such stocks on dips as any correction in the prices should be used as a buying opportunity.

Siddharth Sedani

Indian benchmark indices continued its losing streak for the sixth consecutive day as Nifty finished below 11,300 level. Overall trading sentiment remains weak in the near term due to taxation issues, dull earnings and slowing consumption.

Also, oil prices have nudged higher on rising tensions over Iran and a sharp fall in US crude stocks, although worries about weak demand will continue to keep a cap on gains. Markets are expected to be volatile in the near term on account of broad events including US Fed policy meeting scheduled on July 30-31, the progression of monsoon, upcoming RBI policy and the results of various companies.

Other important factors such as oil prices, movement of rupee and investment trend by overseas investors would also influence trading in the market. Though slowdown issues could drag the markets in the medium term, it gives an investment opportunity for long term investors who have a horizon of more than 2-3 years.

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