Technical Picks: Nagaraj Shetti of HDFC Securities suggests these two stocks to buy this week | Stock Market News
Source: Live Mint
Stock market today: The major domestic stock indices, Sensex and Nifty 50, declined on Monday, pressured by consumer shares following Godrej Consumer Products’ disappointing third-quarter outlook and by automotive stocks after reports indicated a decline in car sales last month.
Monday’s declines follow a period where the benchmark indexes recorded three consecutive weekly increases after falling into correction territory in November. Last week, they rose approximately 2.3%, marking their best performance since early June, as the Reserve Bank of India relaxed monetary conditions on Friday by reducing the cash reserve ratio.
On Monday, Sensex declined 200.66 points to settled at 81,508.46; Nifty 50 dipped 58.80 points to 24,619.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the domestic market displayed a range-bound trading pattern following last week’s surge. The increase in oil prices due to escalating tensions in the Middle East, coupled with investor caution ahead of significant economic reports such as India’s and the US’s CPI data and the ECB’s policy announcement this week, affected market sentiment. There has been some buying interest in capital goods and metal stocks in anticipation of stimulus measures from China following an unexpected decline in inflation.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Consolidation movement continued in the Nifty 50 at the highs. Positive chart pattern like higher highs and higher lows is intact on the daily timeframe chart. Hence, further consolidation or any dips could be a buying opportunity.
Having moved above the crucial hurdle of 24,400-24,500 levels as per smaller and larger timeframe charts recently, there is a possibility of more upside for this week. The next upside targets to be watched around 25,000 for this week. Immediate support is at 24,525.
1. Buy Elecon Engineering at 631, Target 660, Stoploss 615, Timeframe 1 week.
2. Buy Kirloskar Oil Engines at 1168.50, Target 1235, Stoploss 1130, Timeframe 1 week.
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.
