Stocks to buy or sell: Sagar Doshi of Nuvama suggests United Spirits, Godrej Prop, Chalet Hotels today – 18 December | Stock Market News
Source: Live Mint
Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, fell slightly on Wednesday, continuing the downward trend from the previous day, as investors awaited the US Federal Reserve’s policy announcement, which will be scrutinized for cues regarding its future approach to interest rate cuts.
Sensex was down 149.31 points to 80,535.14 in early trade; Nifty 50 dipped 62.9 points to 24,273.10.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the short-term market outlook has weakened as foreign institutional investors (FIIs) have shifted to selling during market rallies. The trend of FII purchasing seen in early December has, as anticipated, turned out to be a temporary phase. The staggering FII sell-off amounting to ₹6410 crores in the cash market yesterday suggests that more selling activity is likely with market upswings.
The key reason for this FII selling in India is the superior performance of the US market compared to India’s lackluster showing. While the S&P 500 has risen by 27.5% year-to-date, the Nifty 50 has only increased by 12% over the same period. There is concern that this significant disparity in performance may persist, particularly due to the robust US economy contrasted with India’s economic struggles. However, this situation might shift if leading economic indicators in India point to a recovery in GDP growth and improvements in corporate earnings for the third quarter.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50
Nifty 50 has been trading within its previous week’s range despite a 450 odd point sell off from its opening trade on Monday. This sell off was triggered due to comments from China on its Budget Deficit and economic growth revision for 2025. Markets are likely to climb this wall of worry in a day or two. 24,300 is an immediate support and that is where the markets have rested after Tuesday’s pain point session. Daily chart set up showing formation of right side cup of its cup and handle pattern and hence a reversal can be played with an SL at 24,150 for upside back to 24,550 / 24,950 in the days to come.
Bank Nifty
Bank Nifty is on the verge of retesting its support of 52,600 which earlier acted as resistance for 8 weeks long. This is likely to allow demand for the index to reverse for an upside back to 53,800 on the upside. Currently the index has also taken support of its 38.20% retracement of the rally it saw in the past 2-3 weeks. Furthermore the index can also extend its ongoing gains for a new all time high target as well.
Stocks To Buy or Sell on Wednesday – Sagar Doshi
On stocks to buy or Sell on Wednesday, Sagar Doshi of Nuvama recommended three stocks – United Spirits, Godrej Properties, and Chalet Hotels.
Stock has given a strong follow through on massive volumes after taking support near 20 day EMA. Also, it has given a daily close above its 2 month high. Continuation in momentum can lead to new all time highs which is less than 10% away.
Realty stocks have been showing strong buying momentum. Godrej Properties is currently undergoing a bullish flag pattern formation and is at a cusp of breakout. A move above 3000 will take stock to 8-10% higher from current levels.
Stock has broken out recently on strong volumes and made a new all time high. The ongoing consolidation above breakout level provides low risk entry for the upside gain.
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.
