Stocks to buy or sell: Sagar Doshi of Nuvama suggests IndiGo, Jindal Steel, Medanta today – 5 March

Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, started the day on a positive note on Wednesday, driven by gains in information technology stocks and buoyed by performance in other Asian markets, as the US Commerce Secretary suggested a potential easing of tariffs on Canada and Mexico. Most Asian markets experienced increases, with the MSCI Asia ex Japan rising by 1%, fueled by expectations of a partial rollback of US tariffs on Canada and Mexico, according to reports.

In early trading, Sensex rose by 333.19 points to reach 73,323.12, and Nifty 50 increased by 92.85 points to 22,175.50.

Investors are keeping an eye on US President Donald Trump’s speech to Congress for any indications regarding future tariff measures.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market showed signs of recovery from its earlier lows but stayed in negative territory due to unfavorable global signals stemming from rising global trade tensions. However, the broader market performed better, mainly due to value buying opportunities present in small-cap stocks. At this moment, domestic economic indicators remain positive as investors look for more clarity on global trade to ensure a consistent momentum.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50

Nifty 50 had made a fresh 9 month low at the start of this new calendar month completing both the lower targets of 22,400 / sub 22,100 which got opened after the index closed below 22,800. Currently now shift our view to neutral and wait for a reversal sign on the index given the oversold structure across timeframes. This oversold structure has developed due to price action on Nifty 50, where in the past 1 month, Nifty 50 has ended in green only once to the tune of 0.1%. Hence, short covering does not open up unless Friday’s high of 22,450 is taken out on a closing basis.

Bank Nifty

Bank Nifty has now made a fresh swing low after breaking its range of 48,800-49,800 on the lower side. The banking major index has also traded at a fresh 9 month low. Along with Nifty 50 both these leading indices are currently taking support at the 61.8% Fibonacci extension on 5 year weekly and monthly charts and hence important to wait for 48,600 to be taken out for a reversal sign to emerge before going long.

Stocks To Buy on Wednesday- Sagar Doshi

On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks – InterGlobe Aviation Ltd (IndiGo), Jindal Steel And Power Ltd, and Medanta. 

IndiGo (BUY): LCP: ₹4,598.70; SL: ₹4,480; TGT: ₹4,920

Charts of IndiGo have just given a breakout of its symmetrical triangle pattern which was in place for the past 6 months on daily and weekly charts, a squeezed move from lower high and higher low formation has resulting helped the price push out of this breakout zone. Another 6-8% up move in similar direction could be seen as initial targets of this pattern.

Jindal Steel And Power (BUY): LCP: ₹867.30; SL: ₹841; TGT: ₹940

A 3 – month falling trendline breakout was observed in Tuesday’s trading session with a flag formation on hourly and daily charts which could allow further thrust to Jindal Steel given the initial greenflags seen on metal as a sector. Another 8-10% move in similar direction appears to be unfolding on charts.

Medanta (BUY): LCP: ₹1,209.75; SL: ₹1,168; TGT: ₹1,310

In a scenario wherein stocks and indices are anywhere between 6 month to 12 month lows, this chart is popping out at a 6 month high instead. Early signs of capital flows to the scrip are visible given the price action sustaining against the broader market selloff. With repeated higher low formation on daily charts, this could act as tailwind for another 9-12% upmove in similar direction northwards.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.