Stocks to buy—10 February: Ankush Bajaj recommends three stocks for today

The Nifty 50 index fell 43.40 points (-0.18%) to close at 23,559.95, while the Bank Nifty dropped 223.25 points (-0.44%) to settle at 50,158.85.

Sectoral trends reflected mixed sentiment—PSU Banks (-1.38%), FMCG (-1.30%), and Oil & Gas (-0.90%) saw notable declines, while Metal (+2.66%), Auto (+0.69%), and India Consumption (+0.42%) closed in positive territory, showing resilience.

Among Nifty 50 stocks, Tata Steel (+4.35%), Bharti Airtel (+3.52%), and JSW Steel (+3.41%) led the gainers, reflecting strong buying interest in select metal and telecom stocks. On the downside, ONGC (-2.83%), ITC (-2.32%), and SBI (-2.0%) were the top laggards, suggesting profit booking in heavyweight stocks.

Despite the initial volatility, the market found stability as traders digested the RBI’s policy move. While selling pressure persisted in PSU Banks and FMCG stocks, selective buying in Metal and Auto stocks helped cushion the broader indices.

Stock market outlook:

Nifty update – consolidation with buying opportunities

The Nifty opened on flat with a positive bias on Friday, but gradually declined towards the 10-DEMA at 23,493, closing 30 points lower. In the final hour, it rebounded from a crucial support level near 23,443 but still closed below the 200-DEMA at 23,620. On the upside, resistance remains at the previous swing high of 23,807.30.

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This dip appears to be a temporary pause in the overall uptrend, and we believe pullbacks towards the 23,620–23,400 support zone present a buying opportunity.

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Key technical observations:

Daily chart: Nifty is trading above the 20-DSMA (23,441) but remains below the 40-DEMA (23,578). The momentum indicator has a positive crossover on the daily timeframe.

Hourly chart: The index is trading below the 20-hour SMA (HSMA) (23,585) but above the 40-hour EMA (HEMA) (23,541). However, the momentum indicator has a negative crossover on the hourly chart.

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Market breadth:

Advances: 1,037

Declines: 1,733 (Negative breadth)

While short-term volatility persists, the overall structure remains bullish. Traders can look for opportunities to accumulate on dips within the 23,620–23,400 range

Three stocks to buy, recommended by Ankush Bajaj:

Chambal Fertilisers and Chemicals Ltd: Buy at ₹555.75 | Target ₹625- ₹640 | Stop loss ₹511

On the four-hourly chart, the stock has given a triangle breakout at 540 levels, indicating a potential trend continuation. Additionally, the stock is trading near its lifletime high with strong volume spikes observed on the daily chart, reinforcing bullish momentum.

This setup suggests an upside potential in the coming days, provided the stock sustains above the breakout level with continued volume support. Traders may look for follow-through buying to confirm the breakout strength.

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JSW Steel: Buy at ₹980 | Target ₹1020- ₹1040 | Stop loss ₹948

On the hourly chart, the stock has given a reverse head and shoulders breakout, a bullish pattern that signals a potential trend reversal and upward momentum. Additionally, the ADX (Average Directional Index) is above 30, indicating strong trend strength and momentum continuation. This suggests that the stock is well-positioned for further upside movement in the coming days, provided it holds above the breakout level with sustained buying interest.

M&M: Buy at ₹3198 | Target ₹3360-3400 | Stop loss ₹3107

After making a new lifetime high, the stock has entered a consolidation phase, indicating a healthy price correction before the next move. Recently, the stock has formed a bullish flag pattern on the hourly chart, a continuation pattern that suggests potential for further upside once a breakout occurs.

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Additionally, the auto sector outperformed on Friday, reinforcing sectoral strength. Given this setup, a strong breakout from the flag pattern could lead to a good up move in the coming days, provided volume confirms the breakout momentum. Traders should watch for sustained buying interest above the resistance level for further confirmation.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.