Stocks to buy or sell: Osho Krishan of Angel One suggests buying Hindalco, HEG today – 20 Feb 2025

Stock Market today: On Thursday, the domestic benchmark indices, Nifty 50 and Sensex, opened lower as they followed the trend set by Asian markets amid heightened uncertainty regarding US tariff measures.

This hesitance from investors was reflected in other Asian markets as well, with the MSCI Asia ex Japan index declining by 0.7%. Concerns grew over the potential impacts of US President Donald Trump’s tariff threats, leading to a cautious approach in the markets.

Sensex dropped 393.01 points to 75,546.17 in early trade; Nifty 50 declined 118.95 points to 22,813.95.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlights the ongoing influence of Trump’s tariff discussions on the markets. Just yesterday, Trump announced that the US will impose a 25% tariff on automobiles, semiconductors, and pharmaceuticals, which has affected India’s pharma stocks significantly. Given that major Indian pharmaceutical companies rely heavily on exports to the US, the tariffs, if implemented in early April as indicated, could lead to shortages and increased prices in the US market as well.

On a more positive note, the Reserve Bank of India’s recent signals regarding a growth recovery in the second half of FY25 is encouraging. This development suggests a hopeful outlook for growth and earnings recovery in FY26, which could provide some respite in the current market landscape.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The broader participation levitated the market sentiments with mid and small-cap indices showcasing outperformance. Throughout the trading sessions, the benchmark index has maintained its position within a defined range, demonstrating a steady influx of buying activity at lower price levels for three consecutive days, a trend that suggests a positive outlook for the market.

As previously indicated in the last commentary, a strong support base appears to be forming in the 22,800–22,700 zone, which coincides with the lower boundary of the Falling Wedge pattern, hinting at potential price stabilization and upward movement in the near future. On the higher end, the 23,000 mark remains a formidable obstacle, and a sustained move could only uplift market sentiments toward 23,200-23,250, which aligns with the 20-DEMA, followed by the upper boundary of the Falling Wedge at 23,400, a critical hurdle for trend reversal.

Recently, there has been a noticeable trend of buying on dips, and any positive global developments are likely to boost bullish sentiment. Therefore, it is advisable to seek opportunities to take advantage of these dips and to accumulate quality stocks in a staggered manner.

Stocks To Buy on Thursday – Osho Krishan

On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Hindalco Industries Ltd, and HEG Ltd.

Hindalco Industries Ltd

Hindalco has recently undergone a remarkable surge in both its share price and trading volume, clearly breaking above the 50-DEMA for the first time in quite a while. This shift signifies a noteworthy and positive transformation in its market performance. Furthermore, various momentum indicators are showing strong alignment with the stock’s upward movement, indicating that this positive trend is likely to continue in the near term. From the standpoint of risk and reward, the current positioning of the stock presents an attractive opportunity for investors, making it highly probable that we will see increased buying activity in the near future.

Hence, we recommend to BUY Hindalco around ₹625-620 keeping a stop loss of ₹590 for a potential Target of ₹660-680.

HEG Ltd

HEG has experienced a significant correction of over 45% from its recent peak of 620, with no signs of respite or pullback. The stock is currently trading near historical support levels, almost at the same point it was a year ago. Additionally, the technical indicators have fallen into oversold territory. However, in the last couple of sessions, there has been some stability in the stock, along with a positive crossover in the 14-day RSI, suggesting an increase in buying interest. From a risk-reward perspective, the stock is positioned in a favorable zone and is expected to attract buying activity in the near future.

Hence, we recommend to BUY HEG around ₹350-345 keeping a stop loss of ₹322 for a potential Target of ₹390-400.

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.