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Technical Picks: Vinay Rajani of HDFC Securities suggests these two stocks to buy in the near-term | Stock Market News
Source: Live Mint
Stock market today: Indian stock markets commenced trading on a downbeat note on Thursday, influenced by mixed signals from global markets. In the previous trading session on Wednesday, domestic stock markets bounced back from their lowest levels to end the day with minimal changes.
At 14:16 IST, Sensex was down 513.02 points or 0.66 per cent at 77,635.47, and the Nifty 50 was down 145 points or 0.61 per cent, opening at 23,543.95.
Market participants are paying close attention to forecasts of slower economic growth and are being cautious in anticipation of upcoming third-quarter earnings reports, which are adding to market volatility. Experts in the market believe that short-term sentiments will remain subdued due to various factors, including US bond yields and apprehensions regarding fewer interest rate cuts by the Federal Reserve.
Asian shares generally declined on Thursday amid renewed caution regarding a potential escalation of trade tensions with President-elect Donald Trump set to take office. Reports indicate that US futures dropped while oil prices increased. The US markets will be shut down Thursday in observance of a National Day of Mourning for former President Jimmy Carter.
On Wednesday, Wall Street remained stable following robust economic reports that raised concerns about inflation and interest rates possibly staying elevated longer than anticipated.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50
For the last three trading sessions, Nifty 50 has been consolidating and hovering near its 200 days EMA. At present Nifty 50 placed below its 20,50, 100 and 200 days EMA, which indicates downtrend on positional charts. At present, Nifty 50 is trading within the symmetrical triangle pattern on the daily chart, which is usually a continuation pattern. Bearish breakout will be confirmed once Nifty 50 closes below 23,460. Any close below 23,460 could drag Nifty 50 towards the next downside target of 23,263 and 22,800. On the higher side, 23,800 is an immediate resistance. Positional resistance is placed at 24,000 odd levels, above which bearish bets should be taken off.
Bank Nifty
Bank Nifty is in continuation of a downtrend as it has been sustaining below all key moving averages. Index has reached at 7 month low by breaching previous swing support of 49,600-49,700. The Index has also broken below the upward sloping trendline on the weekly chart, indicating a bearish trend reversal. On positional charts. This move has also confirmed the bearish head and shoulder pattern on the weekly chart. Therefore, every recovery should be utilized to lighten long commitments in the sector as well as in the bank index. Next supports for the Index are seen near 48,600 and 46,100. Resistances for the index are seen at 49,700 and 50,500.
Technical Picks: Stocks to buy in the near-term
Buy EIH Ltd (415): | Targets Rs. 460,485 | Stop-loss ₹393
Stock price has broken out from the bullish “Flag” pattern on the daily chart. Stock price has also broken out from bullish cup and handle pattern on the daily chart. Stock price has been rising with the rise in volumes. Stock is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on the daily charts. Hotel sector stocks has been outperforming for last couple of weeks.
Buy Pfizer Ltd (5390): | Targets Rs. 5645,5940 |Stop-loss ₹4,900
Stock is on the verge of breaking out from the “flag” pattern on the daily chart. Stock price has been rising with the rise in volumes. Stock is placed above all important moving averages, indicating bullish trend on all time frames. Stock price has recently found support on 20 DEMA and resumed uptrend. Indicators and oscillators have turned bullish on the daily charts.
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.
