Technical Picks: Nagaraj Shetti of HDFC Securities suggests these two stocks to buy in the near-term | Stock Market News
Source: Live Mint
Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, were generally subdued on Monday. Gains in cement manufacturer Ultratech and Grasim Industries helped offset broader losses, which were driven by concerns over domestic economic growth and its impact on the central bank’s monetary policy decisions.
Data released late Friday indicated that India’s economic growth slowed more than expected in the third quarter, affected by sluggish momentum in manufacturing and consumption. Experts believe this data is likely to intensify pressure on the Reserve Bank of India (RBI) to lower interest rates, which could negatively affect market sentiment.
The Nifty 50 was up 0.5% at 24,245.10 points, as of 14:10 IST, while the Sensex was up 0.4% to 80,138.23.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the 5.4% shock to growth will impact the markets, but the effect is expected to be limited. He explained that much of this slowing growth had already been priced into the market following the disappointing Q2 results. Therefore, if there is a significant downturn in the market, it could present a buying opportunity, especially since Domestic Institutional Investors (DIIs) are likely to continue purchasing during dips.
In light of this growth slowdown, he mentioned that the Reserve Bank of India (RBI) is expected to cut the Cash Reserve Ratio (CRR) on December 6. However, he added that the Monetary Policy Committee (MPC) is unlikely to reduce rates while CPI inflation is currently at 6.2%.
Mid-market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
After opening with a negative note, Nifty 50 witnessed smart intraday upside recovery from the lows of 24,008 levels and is currently placed higher. Further up move from here could find Nifty 50 to challenge the crucial hurdle of 24,350 levels, where the multiple short-term tops are placed.
A decisive upside breakout of the said resistance (24,350) could open sharp upmove towards the next resistance and also previous intermediate highs of around 24,538-24,978 levels. Incase of weakness, Nifty 50 could find support around 23,900 levels.
Technical Picks: Stocks to buy in the near-term
1. Buy Biocon at ₹380, Target at ₹399, Stoploss at ₹370, Timeframe 2-3 Days.
2. Buy Syngene International Ltd at ₹955, Target at ₹1,000, Stoploss at ₹930. Timeframe 2-3 Days.
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.
