Stocks to buy or sell: Osho Krishan of Angel One suggests buying Ashok Leyland, NBCC today – 6 February | Stock Market News

Stock Market today: The main stock indices, Nifty 50 and Sensex, began Thursday positively as investors took a cautious approach in anticipation of the Reserve Bank of India’s (RBI) decision on interest rates.

The Nifty 50 index commenced at 23,761.95, up by 62 points, while the Sensex jumped over 200 points to start at 78,513.36. Analysts suggest that Indian markets are presently undergoing a consolidation phase, with the forthcoming rate cut decision likely to impact future trends.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the market is expected to receive a slight boost in the short term from a potential 25 basis point rate cut by the Monetary Policy Committee (MPC) tomorrow.

Although the steadily declining INR does not create a favourable macroeconomic environment for a rate cut, the MPC is anticipated to proceed with a 25 basis point reduction to sustain the positive momentum generated by the Budget.

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

After a sharp rebound of 1,000 points from recent lows, bulls have taken a pause as prices approach a key resistance zone on the daily chart. In recent weeks, we have highlighted a Falling Wedge pattern, from which the recent rally originated at the lower boundary. Currently, prices have reached the upper boundary of this pattern, coinciding with a critical resistance level at 89-EMA on the daily chart. It seems that traders are choosing to book some of their long positions around this key resistance, especially with upcoming domestic events, including the Monetary Policy Committee (MPC) meeting outcome and the results of the Delhi state elections.

Additionally, global factors such as the ongoing trade war continue to contribute to uncertainty in the market. Despite this, the recent recovery has brought about some positive technical indicators, with prices remaining above short-term moving averages like the 20 DEMA and the 50 DEMA. Furthermore, a bullish gap remains intact on the daily chart. As long as key support levels hold, a buy-on-dip strategy is still considered viable.

Immediate support is identified at 23,600, marked by the Budget Day high and a Cup & Handle breakout on the hourly chart, with further strong support near the 23,400 mark due to the bullish gap. On the upside, resistance levels are present at regular intervals, with 23,900 (89 DEMA), 24000 (200 DSMA), and 24,250 (previous swing high) acting as important hurdles. With the weekly expiry approaching, traders should closely monitor these levels and adjust their strategies accordingly.

Stocks To Buy on Thursday – Osho Krishan

On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks – Ashok Leyland Ltd, and NBCC (India) Ltd.

Ashok Leyland Ltd

Ashok Leyland has faced selling pressure after peaking above 260 in September 2024. Historically, the stock has found support near the 89-EMA on the weekly chart, which is currently around the 200 level. On a longer degree chart structure, it is placed around the 20-EMA on a monthly chart which has acted as a strong support zone. Given the current technical placement and historical support at these levels, we expect a potential short-covering rally from this point.

Hence, we recommend to BUY Ashok Leyland around 210-205 keeping a stop loss of 189 for a potential Target of 265.

NBCC (India) Ltd

NBCC (India) has been into a consolidating phase for the past four consecutive months, hovering around its short-term moving average. However, in the last couple of sessions the counter has started gaining traction and started forming higher highs – higher lows. The technical parameters have also seen a bounce from the oversold terrain, and witnessed positive crossover, suggesting buying emergence in the counter. Also, from a risk reward point of view the counter is placed at a favorable region with limited downside.

Hence, we recommend to BUY NBCC around 94-92 keeping a stop loss of 85 for a potential Target of 105-110.

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.