Shares to buy: Riyank Arora of Mehta Equities suggests these three stocks to buy in short term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced declines on Tuesday due to widespread losses amid ongoing concerns regarding weak corporate earnings and continued foreign selling, while the broader small and mid-cap stocks fell on valuation worries.

As of 14:08 IST, the Nifty 50 had decreased by 0.21% to 22,910.95, and the Sensex dropped by 0.15% to 75,885.50.

The indices broke an eight-session losing streak on Monday, the longest since February 2023, to close slightly higher.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that the market’s weakness continues even after the slight recovery observed yesterday. The current market conditions do not support a rally. Foreign Institutional Investors (FIIs) are expected to keep selling. The news updates are not encouraging.

The US market remains strong, which could lead to increased capital inflows into the US from other markets. A recent development from Chinese authorities reveals a new outlook on the relationship between the Chinese government and domestic businesses. President Xi has emphasized the need for a “clean relationship” with businesses, seen as a positive step towards revitalizing the struggling Chinese economy, which is currently facing challenges due to issues in the real estate sector. If the new initiatives from the Chinese government receive favorable reactions from FIIs, it could spell further trouble for the Indian markets.

Market Views – Riyank Arora, Technical Analyst, Mehta Equities Ltd

Nifty 50

The benchmark index touched its major support mark of 22,786 and made a bullish candlestick at Monday’s closing, showing signs of bottoming out on Nifty. A major support is now looking to be placed at 22,700 mark and upside should extend towards 23,500 and 23,800 odd levels on the same. Overall, as per OI data and technical indicators, we feel that the bottom has been made and we would not go below 22,700 odd levels and should resume the bullish up-trend yet again.

Bank Nifty

The benchmark touched most important support mark of 48,500 and indicated strong signs of reversal coming in from lower levels. A strict stoploss should now be kept at 48,500 and we should likely see upside move towards 50,000 and 50,600 odd levels coming back up. With most of PSU and Private Banking companies having strong positive chart setups, we feel that the sector should pick up and eventually go higher from here on.

Shares to buy for short term

Riyank Arora recommends buying these three stocks in the short term – Granules India, IndusInd Bank, and Tata Motors.

Granules

Buy | CMP : ₹522.75 | SL : ₹500.00 | TARGET : ₹620.00

The stock has touched major support mark of 502 and showing strong signs of reversal from the same. With RSI (14) indicating oversold conditions and stock seeing some buying from its important support level. A strict stoploss should be kept at 500 mark to manage risk well and we can see upward targets going all the way towards 620 and above. Strong technical structure with potential double bottom formation makes the stock a good buy at current levels.

IndusInd Bank

Buy | CMP : ₹1,048 | SL : ₹1,010 | TARGET : ₹1,095

The stock has touched major anchor vwap support mark of 1,015 and showing good signs of reversal from lower levels. With PSU and Private Banking stocks picking up well and Bank nifty also having a strong chart structure, we feel that Indusind bank should likely head towards 1,095 and above as this rally extends. A strict stoploss should however be kept at 1,010 to manage risk well on this trade.

Tata Motors

Buy | CMP : ₹686 | SL : ₹665 | TARGET : ₹700 AND ₹720

The stock has been consolidating well since last few trading sessions and automotive index is showing strong signs of potential bottom at current levels. With the technical structure being strong and stock having major support at 660-665 odd levels, we expect upside to go towards 700 and 720 odd levels. A strict stoploss should be kept at 665 mark to manage risk well.

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.