MSCI adds Tech Mahindra, YES Bank and Nestle. Should you buy?

What should be the strategy to play these stocks and what are the key levels on the counters?

The MSCI (Morgan Stanley Capital International) India index will see the addition of three companies, including Tech Mahindra and YES Bank, while four entities would be dropped with effect from November 26.

Index provider MSCI on Thursday said it would add shares of Nestle India, Tech Mahindra and YES Bank to its MSCI India index.

The changes will be effective from November 26, 2013. Experts say this addition will be a big boost for these stocks because MSCI's indices are followed by global investors when they take their investment decisions.

Kunal Bothra, Technical Analyst of LKP Securities lays out the roadmap for these stocks and tells Manu Kaushik how are the stocks placed on technical parameters. Following is the excerpts:

SmartInvestor : Last week was a dark one for markets after the Diwali glitter and now this week markets have come under selling pressure again. Do you see this weak trend to continue on the charts. What are the key levels to watch out?

Kunal Bothra : I think it was a corrective wave for the markets after creating the fresh year high two weeks back. However, I think 6100 on closing basis is a strong support level for Nifty. If it closes below this level then, I think the trend could face some serious selling pressure. On the resistance end, the 6300 mark is the barrier above which the uptrend could resume once again.

SmartInvestor : How are Tech Mahindra, YES Bank and Nestle placed on technical parameters . The counters were included in MSCI Global Standard Indices?

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