Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy in the short term | Stock Market News

Stock market today: The Nifty 50 and Sensex, which are the primary domestic benchmark indices, dipped on Friday, impacted by declines in IT and financial sectors, as investors expressed concerns regarding the Federal Reserve’s forecast of reduced rate cuts in the coming year, leading to a withdrawal of foreign investments.

As of 14:26 IST, the Nifty 50 fell by 1.09% to 23,690.75, and the Sensex decreased by 1.01% to 78,404.76.

Both indices have recorded weekly losses exceeding 3% so far. They are on track for their first weekly decline in five weeks.

The Federal Reserve announced a quarter-point interest rate reduction this week but projected two cuts in 2025, which is half of what officials had expected, reducing foreign investors’ interest in Indian stocks.

They sold off 122.31 billion rupees ($1.44 billion) worth of shares this week up to Thursday, but remain net purchasers in December following two months of being net sellers, according o Reuters report.

Interest rate reductions in the US typically benefit assets in emerging markets, such as Indian stocks, since they encourage increased foreign investment.

“The FII buying witnessed in early December is getting reversed now with this week’s selling reaching ₹12,229 crores. This change in FII strategy is getting reflected in market trends,too, with largecaps, particularly financials, coming under pressure due to FII selling. This trend is unlikely to sustain and, therefore, retail investors can adopt a strategy opposite to the FII strategy. Quality largecaps will soon bounce back,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

Nifty 50 has exhibited signs of weakness after a decisive breakdown below the 23,800 mark, signaling a shift in sentiment to the negative side. This development suggests that the index could trend lower, with a downside target around 23,500. The 24,000 level should now act as a strict stop loss for any counter-trend moves. Given the bearish undertone, traders should approach the market with caution, using pullbacks as opportunities to initiate short positions.

Bank Nifty

Bank Nifty has also broken below the critical 51,500 level, further reinforcing a bearish outlook. The index appears to be heading toward the 50,000 mark in the near term. Traders are advised to maintain a stop loss at 51,600, as the index continues to face downward pressure. The sentiment remains weak, and any rallies are likely to be capped by selling interest.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term –

• Analysis: Akums Drugs is showing signs of strength, supported by an RSI divergence, which indicates potential upward momentum. The stock has strong major support levels, providing a stable foundation for further upside. A sustained move above ₹574 could accelerate gains toward ₹725.

Premier Energies Ltd

• Buy Price: ₹1,317

• Targets: ₹1,450 and ₹1,500

• Analysis: Premier Energy has broken above key resistance levels, signaling a bullish breakout. This development highlights significant upside potential, with targets set at ₹1,450 and ₹1,500. The stock offers a favorable risk-reward profile within the current buying range.

Bharat Petroleum Corporation Ltd (BPCL)

• Buy Price: ₹293

• Targets: ₹325 and ₹330

• Analysis: BPCL is witnessing a rebound from major support levels, demonstrating a mean reversion pattern. This recovery presents an attractive buying opportunity, with the potential to achieve targets of ₹325 and ₹330 in the short term.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.