Stocks to buy or sell: Sagar Doshi of Nuvama suggests Apollo Tyres, Jubilant Food, HPCL tomorrow – 26 December | Stock Market News
Source: Live Mint
Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, closed lower after a volatile trading session on Tuesday, unable to maintain their initial gains.
At the end of the trading day, Nifty 50 stood at 23,727.65, decreasing by 25.80 points, or 0.11%, while Sensex finished at 78,472.87, down by 67.30 points, or 0.09%. The trading session on Tuesday experienced increased buying in sectors such as auto, FMCG, oil and gas, pharma, and real estate; conversely, selling pressure was seen in IT, media, metal, and PSU Bank sectors. Other areas also experienced declines, with losses reaching up to 0.83%.
Analysts believe that the Indian stock markets are facing challenges largely because of two key factors: the robust dollar and elevated bond yields in the US, which are leading foreign institutional investors to sell during upward trends. A short-term rally appears to be unlikely. As the end of the year approaches, investors are encouraged to focus more on safety than on returns given the current circumstances. The stock exchanges will be closed today, December 25, 2024, due to Christmas.
Vinod Nair, Head of Research at Geojit Financial Services, mentioned that the domestic market ended on a flat note prior to the holiday, as metal and power stocks hindered performance, while the FMCG and auto sectors benefited from recent corrections. The direction of the market in the near term depends on the results of Q3 and the Union budget, but there is a prevailing sense of caution due to a strengthening dollar, elevated bond yields, and uncertainties about rate cuts. The Indian Rupee reaching an all-time low has further heightened this caution.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50 has formed a double inside bar formation on daily charts which means, that for the past 2 trading days, the index has been trading within its previous day’s range. This makes Tuesday high and low important now for a short term trend to unfold for the next 2-3 trading sessions in this holiday shortened week. The index is stuck between a supply zone of 200 DMA at 23850 while an important demand zone of 23650. Break on either side is likely to allow a follow through of 300-350 odd points on the same side of chart.
Bank Nifty
Bank Nifty as well has similar formation like Nifty 50 on daily charts of a double inside bar formation, however the index is currently above its 200 DMA unlike the Nifty 50. The index appears stronger on charts compared to Nifty currently. 200DMA on this is coinciding along with a long term trendline on weekly charts at 50,500 and hence the same is likely to act as a strong support for the days ahead. Upside appears to be open for 52,000/52,500 in the short term with 50,500 seen as immediate demand zone on Bank Nifty.
Stocks To Buy or Sell on Thursday – Sagar Doshi
On stocks to buy or Sell on Thursday, Sagar Doshi of Nuvama recommended three stocks – Apollo Tyres Ltd, Jubilant FoodWorks Ltd, and Hindustan Petroleum Corporation Ltd (HPCL).
Apollo Tyre has been consolidating within a 20% band from the start of this year wherein the scrip has been showing relative strength against the broader market and index correction seen this month. December series has allowed the stock to form a higher low formation on daily charts versus the lower high formation seen on indices. This suggests that any rally on mainline indices is likely to attract prioritised inflow in this scrip. A flag pattern formation is also seen on charts wherein momentum is set to trigger above 540 for a quick 708% rally northwards.
Jubilant FoodWorks is showing early signs of ending its 3 year correction as the stock has popped out of a cup and handle formation on weekly charts. Lower time frame daily as well as hourly charts also have similar formation for their respective short term targets. For now, we are eyeing a 7-9% upmove but on sustaining at current levels , the stock opens open for much higher targets upside.
Daily charts suggesting an end to the correction start 100 days ago on charts on HPCL. A flag pattern breakout is also seen on daily charts along with other OMC names listed on the exchanges. With the current market environment we are seeing a 5-7% upside in the current upleg given the highly liquid names in this space.
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.
