Shares to buy or sell: Sachin Gupta of 5paisa recommends Ashok Leyland, Bajaj Finserv today – 18 February

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, had a lackluster opening on Tuesday as weak corporate earnings and ongoing foreign selling continued to impact investor sentiment.

The Nifty 50 index began at 22,963.65, reflecting a slight increase of 4.15 points or 0.02%, while the Sensex rose by 31.98 points or 0.04% to start at 76,028.84. The indexes ended an eight-day losing streak on Monday, their longest since February 2023, closing just above the flat line.

Market analysts indicated that foreign outflows are unlikely to diminish in the near future, maintaining pressure on the markets. They anticipate a sideways to negative trading day for Indian stocks.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that the market continues to show weakness despite a slight recovery observed yesterday. The overall market environment does not support a rally.

Foreign Institutional Investors (FIIs) are expected to keep selling. The news flow remains negative. The US market remains robust and could draw more capital from other markets. Given that large-cap stocks are relatively valued in India, cautious buying in this area can be considered. However, the current market conditions do not favour aggressive purchasing.

Market Review and Outlook – Sachin Gupta, Senior Research Analyst at 5paisa

After opening weak, Nifty 50 rallied modestly throughout the day and closed in the green with a 0.15% gain, breaking one of the longest losing streaks in recent memory. Barring small-cap stocks, most other indices also closed in the green. Bajaj Finserv (2.7%) and Adani Enterprises (3.9%) led the gains, while M&M and Bharti Airtel lagged. The positive advance-decline ratio of 2.1 reflects broad-based buying.

Technically, Nifty 50 has found support at the lower line of the Falling Wedge pattern, suggesting a potential reversal from the 22,700 level. However, the downward momentum remains intact, as Nifty 50 is trading below key moving average support levels. Additionally, the RSI remains moderately weak at 40, and both near-term and medium-term trend lines are still well above the current levels. Unless there is a sustained rally, the overall momentum remains bearish. Near-term support and resistance levels are 22,700/22,550 and 23,200/23,330, respectively.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends Ashok Leyland Ltd, and Bajaj Finserv Ltd.

Ashok Leyland Ltd

On the daily chart, the stock has formed a Bullish Engulfing pattern and has sustained above the 200-day Exponential Moving Average, suggesting bullish momentum for the medium term. Additionally, the stock has witnessed higher volume and a positive crossover in the RSI, indicating bullish strength.

Furthermore, the price has moved above the Ichimoku Cloud formation, signaling a bullish presence. Based on the above analysis, we recommend buying Ashok Leyland around 224, with an upside target of 233/240 and a strict stop loss of 215 on a closing basis.

Bajaj Finserv Ltd

On the daily timeframe, the stock witnessed a Bullish Pennant pattern breakout and has sustained above the prior swing highs, indicating the continuation of bullish momentum. Moreover, the stock is trading above key moving averages, namely the 100-day and 200-day EMAs, which signals bullish presence in the prices. Additionally, the stock price has settled above the Upper Bollinger Band formation, pointing to positive market breadth and buying interest among traders. On the weekly chart, the stock is forming a rounding pattern, which also supports the positive trend.

Hence, we are expecting a bullish move in Bajaj Finserv around 1894, with a potential target of 1,978/2,040 and a stop loss of 1,810 on a closing basis.

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.