Shares to buy or sell: Sachin Gupta of 5paisa recommends buying L&T, SAIL today – 10 December 2024 | Stock Market News

Stock market today: The domestic benchmark, Sensex and Nifty 50, saw minimal movement at the start of trading on Tuesday, as investors proceeded cautiously while waiting for important inflation figures from both India and the US later this week.

The Nifty 50 index began the day at 24,652.65 points, showing an increase of 33.65 points or 0.14 percent, while the Sensex started at 81,575.96 with a rise of 67.50 points or 0.08 percent.

Analysts observed that the market’s consolidation period is anticipated to persist. Nevertheless, the threat of a downward shift in the markets due to the Syria situation has diminished. By the end of the year, markets may enter a bullish phase.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that the market is expected to experience a narrow consolidation phase in the short term. There are no significant catalysts that could drive the market into a new bull phase. Likewise, there are also no prominent factors that could lead to a substantial decline from current levels. Within this range, notable fluctuations can be observed in both directions. FMCG stocks are currently under selling pressure due to the sluggish growth period they are experiencing. The strength of banking and IT stocks is likely to endure for a while longer, as there are favourable conditions that may support their upward movement.

On Monday, India appointed Sanjay Malhotra, a long-serving civil servant, as its new central bank governor in an unexpected decision. With the appointment of the new governor and the retirement of one of the deputy governors next month, the monetary policy committee (MPC) will have a fresh composition, leading some economists to suggest that interest rate reductions could be implemented sooner, according to reports.

Market Review and Outlook – Sachin Gupta, Senior Research Analyst at 5paisa

The Nifty 50 benchmark index traded in a narrow range on Monday, closing at 24,619 with a marginal loss of 0.24%. Sector-wise, Metals, Consumer Durables, and IT posted slight gains, while FMCG, Auto, and Media dragged the market lower. Key gainers included LT, Wipro, SBI Life Insurance Company, and Tata Steel, while Tata Consumer Products, Hindustan Unilever, and Tata Motors emerged as the top laggards.

From a technical perspective, Nifty 50 slipped below the previous day’s low but maintained support above the 89-day exponential moving average (DEMA) and the neckline of a Inverted Head & Shoulders pattern, suggesting continued bullish momentum in the short term. However, the hourly chart indicates some fatigue following last week’s rally, pointing to a potential sideways or consolidation phase in the near term.

Market sentiment remains optimistic for the short to medium term. Traders are advised to maintain a positive bias as long as the index stays above the 24,350 mark and to consider buying on dips. Immediate support levels are seen at 24,500 and 24,350, while resistance levels are positioned at 24,850 and 25,000.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends Larsen & Toubro (L&T), and Steel Authority of India Ltd (SAIL).

The stock has sustained its bullish momentum after breaking out of a symmetrical triangle pattern on the daily chart, reaching an all-time high during Monday’s session. On the weekly timeframe, the price has shown consistent upward movement over the past few weeks, with no significant selling pressure, signaling strong short-term bullish momentum. This rally is further supported by higher trading volumes and a positive crossover in the Relative Strength Index (RSI). Additionally, the stock has moved above the upper Bollinger Band on the daily chart, highlighting its robust performance.

Based on the above technical parameters, we recommend buying in L&T around ₹3,945– ₹3,930, with a stop-loss at ₹3,812, for the potential upside targets of ₹4,085 and ₹4,180.

SAIL

On the daily chart, the stock has exhibited a Double Bottom Pattern and is trading above the 50-day EMA, indicating a bullish reversal formation. Additionally, the stock has broken out of its recent consolidation phase with higher trading volumes, signaling increased buying interest among traders. This technical setup suggests a potential recovery in the stock over the short term. Traders are recommended to consider buying SAIL above the 127 level, setting a stop-loss at ₹120, and aiming for an upside target of ₹134 and ₹138.

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.