Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy or accumulate in the short term

Stock market today: Benchmark indices Sensex and Nifty 50 experienced a sharp decline on Friday, reflecting significant drops in global markets after the announcement of an additional 10 percent tariff on Chinese goods unsettled investors. Continued outflows of foreign funds also contributed to investor anxiety.

The 30-share BSE benchmark Sensex fell by 1,379.69 points to reach 73,185.99 during the afternoon session. The Nifty 50 dropped by 309.30 points to hit 22,235.75

In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong all saw substantial losses.

According to reports, investors’ wealth decreased by ₹7.46 lakh crore during morning trading on Friday, coinciding with a steep decline in the domestic equity market, as the benchmark Sensex fell more than 1,000 points in response to a negative trend in global stocks.

Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, stated that investor sentiment has declined due to ongoing concerns about Trump’s tariff war announcement, leading to a widespread selloff throughout various sectors in the market. Continuous selling pressure from Foreign Institutional Investors (FIIs) is now being mirrored by domestic investors who are experiencing similar challenges. In summary, the Nifty 50 has endured a lackluster session for the seventh consecutive day.

Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

Nifty 50 has broken below the crucial support level of 22,500, confirming a bearish structure in the short term. With selling pressure dominating, the index looks set to test 22,000 and 21,500 odd levels. The negative sentiment is reinforced by weak momentum indicators and persistent follow-up selling. The strict stop loss for any short positions should be set at 22,600, as any move above this level could trigger a short-covering rally. However, as long as Nifty 50 remains below this zone, the trend remains bearish.

Bank Nifty

Bank Nifty is holding firm at the 48,000 support zone, which is crucial for determining the next directional move. If this level breaks, the index could slide further towards 47,500, where strong demand is expected. However, PSU and Private Banks have shown resilience, indicating that buying on dips remains the best strategy. If Bank Nifty sustains above the 48,000 support, a move towards 50,000 and 50,500 is likely once a rally picks up momentum. Traders should focus on quality banking stocks, as they are expected to outperform in the coming sessions.

Shares to buy for short term

Prashanth Tapse recommends these three stocks in the short term – ITC Ltd, Polycab India Ltd, and Imagicaaworld Entertainment Ltd.

ITC

Buy Range: ₹390-395 | Stop Loss: ₹370 | Target: ₹440

Analysis:

ITC has been trading near its major support zone on the monthly time frame charts around 390-395 levels. Historically, this level has acted as a strong accumulation zone, leading to upside rallies. The stock has witnessed steady declines, but long-term buyers are expected to step in at these levels, making it a favorable buying opportunity.

Additionally, RSI (14) on the daily chart is near oversold levels, signaling a potential reversal. If the stock holds above 390, a move towards 440 and above is likely. However, a strict stop loss at 370 should be maintained to manage downside risks effectively.

Accumulate Polycab

CMP : ₹4,668 | Stop Loss: ₹4,270 | Target: ₹5,400

Analysis:

Polycab has touched a strong support zone on daily time frame charts and is showing good price action around these levels. The 4800-4820 zone has historically acted as a demand zone, where buyers have stepped in to push the stock higher.

The stock’s volume profile suggests accumulation, and any dip towards 4800-4820 should be seen as a buying opportunity. If the stock sustains above 4820, momentum could push it towards 5400 in the short term.

Technically, the stock is forming higher lows, which indicates strength despite overall market weakness. A strict stop loss at 4270 should be maintained to protect capital.

Imagicaa

Buy Range: 60-61 | Stop Loss: 57 | Target: 70

Analysis:

Imagicaa has recently touched a major AVWAP (Anchored Volume Weighted Average Price) support zone on the monthly charts, signaling that long-term buyers are active in this region. This support is crucial, as it suggests the stock is forming a strong base before the next move higher. The risk-reward ratio is highly favorable, as the downside risk is limited to the stop loss at 57, while the potential upside remains significant towards 70 and above.

Additionally, the RSI is stabilizing, suggesting the selling pressure is reducing, and a rebound could be on the cards. As long as the stock holds above 60, an upside move towards 70 is expected. A strict stop loss at 57 is necessary to manage risk effectively.

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 decisions.