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 domestic benchmark indices, Nifty 50 and Sensex, began the day flat but showed signs of an upward trend, fueled by optimism for a year-end rally. The Nifty 50 index commenced at 23,801.40, reflecting an increase of 51.20 points or 0.22%, while the Sensex index rose by 135 points or 0.17%, starting at 78,607.58 points.

Analysts remarked that in previous sessions, the markets struggled to maintain the initial rally due to selling pressure from foreign investors, which is likely to persist until the markets observe robust earnings signals.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the Sensex, which was around 1,000 in 1991, has increased approximately 780 times to currently trade above 78,000, providing remarkable returns to long-term investors. The market is expected to continue offering superior returns to investors in the coming years, as the India Growth Story, initiated by liberalisation, remains strong.

In the meantime, temporary setbacks on the path to economic growth will lead to corrections and market fluctuations, similar to the current situation. The primary challenge for the market at this moment is the selling by foreign institutional investors, prompted by a robust dollar (with the dollar index remaining above 108) and appealing US bond yields, where the 10-year yield stands at 4.35%. A shift in FII strategy from selling to buying will occur once macroeconomic indicators point to a recovery in growth and corporate earnings.

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

Nifty 50

The benchmark index is consolidating within a broad range of 23,650-23,950. A major support is observed at 23,650, and a break below this level may lead to a downside towards 23,500 and 23,400. However, as long as 23,650 holds, the overall outlook remains positive, with the potential for the index to move higher.

Bank Nifty

Trading above its crucial support level of 50,800, the Bank Nifty index is poised to head towards 51,600, 51,800, and eventually 52,000. The upcoming rally is likely to be driven by private banking stocks, while PSU banks are expected to trade sideways.

Shares to buy for short term

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

Bharat Electronics Ltd (BEL)

Buy at: ₹295 | Stop Loss: ₹285 | Targets: ₹310 and ₹315

Analysis: The stock is witnessing a strong bounce from its crucial AVWAP (Anchored Volume Weighted Average Price) support level. A surge in volumes indicates robust buying interest, signaling a likely move toward the target levels. The technical structure remains positive, suggesting further upside momentum.

Himadri Speciality Chemical Ltd (HSCL)

Buy at: ₹583 | Stop Loss: ₹560 | Targets: ₹625 and ₹650

Analysis: HSCL has given a decisive breakout above ₹578, supported by a strong uptick in volumes. The breakout signifies a shift in sentiment, with the potential to head toward the higher resistance zones. The stock’s trend is firmly positive, aligning with bullish market indicators.

Mahindra & Mahindra (M&M)

Buy at: ₹3,052| Stop Loss: ₹2,990 | Target: ₹3,200

Analysis: M&M has rebounded from a major support zone, with increasing volumes confirming buyer interest. The technical setup indicates the possibility of a steady upward move, with the stock poised to test the higher resistance levels near ₹3,200. The overall trend remains bullish with a positive outlook.

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.