Stocks to buy or sell: Angel One's Osho Krishan suggests purchasing HDFC Bank Ltd. and Bajaj Finserv Ltd.
Today's stock market: Thursday saw a dismal start to the day for Indian stock markets as selling pressure pushed indices into negative territory. The Nifty 50 fell 51.20 points to open at 23,104.15, and the Sensex started trading down 175.15 points at 76,229.84.Ten of the Nifty 50 equities were rising, forty were falling, and one was staying the same, indicating a largely negative market trend. In view of more general economic and international concerns, this discrepancy suggested poor investor sentiment.
Two significant market patterns were emphasized by Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services. First, institutional activity exhibits a regular pattern: domestic institutional investors (DIIs) are continuously purchasing, while foreign institutional investors (FIIs) are consistently selling.
Second, there is a growing emphasis on quality; large-cap stocks continue to do well despite indications of weakness in the overall market. It is anticipated that these trends will continue in the near future. It is unlikely that FIIs would begin purchasing again anytime soon because US bond yields and the dollar index are still high. Even if the market is currently oversold, this circumstance will restrict any possible market rally.
Osho Krishan, Senior Technical & Derivatives Analyst at Angel One, provides an outlook for the Nifty 50.
After Tuesday's volatility, the Nifty 50 had a rather quiet session, with prices forming a 'Inside Bar' pattern and staying inside the range of the previous day. At the moment, this pattern suggests a support zone between 23,000 and 22,900 levels. The aforementioned support levels coincide with the lower limit of the 'Falling Wedge' pattern, which also contains prices. Furthermore, the possibility of short-term market relief is indicated by the RSI smoothened indicator's bullish divergence.
Resistance levels are still showing up at regular intervals. Most recently, they peaked around the 23,300–23,400 range, which corresponds to the 20 DEMA and acts as an immediate barrier. A breakout above the top limit of the falling wedge, which is currently at a dynamic level close to 24,000 and above all significant moving averages, will be essential for starting persistent positive momentum, even though it is too soon to announce a conclusive recovery. Even while there will likely be some short-term respite, the market is still unpredictable and volatility is expected to continue because of a number of important variables, including impending earnings reports. In this case, a second support zone around the 22,800–22,700 level comes after the 23,000–22,900 support zone.
Traders must monitor these critical levels as the weekly expiry draws near and adjust their strategy as necessary. There may be chances for outperformance as certain themes are expected to garner attention in the next seven trading sessions before the Union Budget. For short-term gains, traders are advised to be alert and focus on pertinent industries or equities.
Thursday Stocks to Purchase: Osho Krishan
Osho Krishan suggested Bajaj Finserv Ltd. and HDFC Bank Ltd. as stocks to purchase on Thursday.
Finserv Bajaj Ltd.
In addition to a positive crossover of short-term EMAs above the 200 SMA, Bajaj Finserv has seen a breakthrough from consolidation on the daily chart. Furthermore, the stock has retested the neckline from its "Symmetrical Triangle" breakout on a longer time frame, and it looks ready to continue its upward trajectory in the near future. This bullish trend is well-supported by the technical indicators, which increases the stock's potential for higher movement.
Therefore, with a stop loss of 1,660 and a potential target of 1,820, we advise buying Bajaj Finserv between 1,730 and 1,720.
HDFC Bank Ltd.
After a notable fall of almost 14% from its 1880 peak, HDFC Bank has been stabilizing over the last two trading weeks close to its 200 SMA, indicating a break from its corrective phase. Although the technical indicators have also fallen into the oversold area, recent events over the past few sessions have produced a positive crossover, suggesting that the stock is beginning to reverse. Additionally, the stock has previously displayed significant consolidation around the 1,620–1,600 level, indicating that the slump may be limited.
Therefore, with a possible target of 1,740, we advise buying HDFC Bank at about 1,650 with a stop loss of 1,600.
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