Stocks to buy today: Ankush Bajaj recommends three public-sector stocks

Nifty Bank opened strong with a gap-up and maintained its momentum throughout the session, closing at 49,702.60, up 388.10 points (0.79%). The steady uptrend reflects growing optimism in the banking sector.

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Broader market trends also pointed to shifting momentum, with key sectors seeing strong traction. Realty stocks led the rally, jumping 2.80%, followed by PSU banks, which gained 1.98%, and the Midcap Select index, up 1.88%. While most sectors showed strength, IT and FMCG stocks ended in the red.

Among individual gainers, Shriram Finance surged 3.99%, HDFC Life Insurance rose 3.75%, and Apollo Hospitals advanced 2.89%, signaling renewed investor confidence in select stocks. On the downside, Tech Mahindra dropped 2.41%, TCS slipped 1.56%, and ITC declined 1.48%, reflecting some caution despite the broader positive sentiment.

Overall, market sentiment appears to be improving, with buying interest picking up across key sectors. However, with some weakness persisting in IT and FMCG, the near-term outlook remains mixed.

Indian stock market outlook

As mentioned in an earlier report at the 22,500 level, Nifty was expected to target 23,000—a milestone that is now within reach. On the options front, the maximum open interest (OI) on the call side, which was previously at 23,000, has shifted to the 23,100–23,300 range. This suggests that the market could test 23,100 today, provided it closes above 23,000.

On the put side, the highest OI is at 22,900, indicating strong support, as many option writers have shifted their positions from 22,600 to 22,900. This setup reinforces a bullish outlook for the session.

From a technical perspective, Nifty is currently trading near 22,988, aligning with the 50-day EMA and finding support at 22,650. Additionally, on the hourly chart, the 20-day EMA has crossed above the 200-day EMA, signaling a strong bullish trend.

Technical indicators: Nifty on hourly chart

Relative Strength Index (RSI): The 14-period RSI stands at 75.78, indicating overbought conditions.

Stochastic Oscillator (STOCH): The STOCH (14,1,3) is at 92, also signaling overbought conditions.

Moving Average Convergence Divergence (MACD): The MACD (12,26) value is 111.34, suggesting a buy signal.

Average Directional Index (ADX): The ADX (14) is at 39, supporting strong momentum.

Three public-sector stocks to buy, as recommended by Ankush Bajaj:

Indian Railway Finance Corp Ltd: Buy at ₹128.10 | Target ₹150-155 | Stop loss ₹ 116.80

On the hourly chart, the IRFC stock has formed reverse head and shoulder also stock is trading above multiple moving averages (20/50/100/200) macd also on positive side.

Coal India Ltd: Buy at ₹395.85 | Target ₹420-430 Stop loss ₹388

On the daily chart, Coal India shares showing strong momentum rsi above 60 level cci at 160 and macd also in bullish side,on hourly chart if stock sustains above 400 levels we might see a 5-7% rally soon,stock is in long consolidation from 360-397 levels

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Hindustan Aeronautics Ltd: Buy at ₹3,740 | Target ₹3925-3950 | Stop loss ₹ 3,633

Reverse Head and Shoulders Pattern: The stock has formed a reverse head and shoulders pattern, which is typically considered a bullish reversal signal.​Relative Strength (RS): The RS indicator is rising, indicating strengthening momentum.​Momentum Indicators: Other momentum indicators (RSI,MACD) also suggest that the bullish momentum is likely to continue.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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