Technical Picks: Nagaraj Shetti of HDFC Securities suggests these 2 stocks to buy or sell in the near-term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced a pullback on Thursday after starting the day on a positive note. Losses in the automobile sector and UltraTech Cement weighed heavily on the indices, despite some upward momentum in financial stocks due to a partial easing of stricter rules for loans to small borrowers and non-bank lenders.

By 13:02 IST, the Nifty 50 was down 0.06% at 22,534.40, and the Sensex was up by 0.02% to 74,614.16, after opening up 0.2%. The upcoming expiry of Nifty 50’s February derivatives contracts is contributing to volatility, as traders adjust their positions ahead of the transition to the March series.

Market analysts have pointed to a combination of factors contributing to the current sentiment, including lackluster corporate earnings, worries about an economic slowdown, and ongoing capital outflows by Foreign Portfolio Investors (FPIs). As the day progresses and the February derivatives expiry approaches, investors are keenly observing market movements to identify potential shifts in trends.

Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities

Nifty 50

Nifty 50 continued to show choppy movement with weak bias so far Thursday and is currently trading on a slightly negative note. After opening with positive note, the market was not able to sustain the opening gains and slipped into weakness from the highs. The overall chart pattern of Nifty 50 remains weak and the next lower supports to be watched around 22,400 levels (20-month EMA. Immediate resistance is placed at 22,700 levels.

Technical Picks: Stocks to buy or sell in the near-term

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy this week – Cholamandalam Financial Holdings Ltd, and Indian Railway Finance Corporation Ltd (IRFC).

Buy Cholamandalam Financial Holdings Ltd at ₹1,643.50; Target ₹1,730; Stoploss ₹1,590; Timeframe 1 week.

Sell Indian Railway Finance Corporation Ltd (IRFC) at ₹121.95; Target ₹115.50; Stoploss ₹126; Timeframe 1 week.

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.