Shares to buy or sell: Sachin Gupta of 5paisa recommends Swan Energy, Tata Motors November Future today | Stock Market News

Stock market today: The key domestic indices, Nifty 50 and Sensex, declined on Tuesday, pressured by major financial stocks and Reliance Industries, as investors remained cautious ahead of the US Federal Reserve’s meeting on December 18, which is being closely monitored for indications regarding its future rate-cut strategy.

The Nifty 50 index commenced trading at 24,584.80 points, decreasing by 83.45 points or 0.34 percent. Similarly, the Sensex fell by 236 points, starting at 81,511 points.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that global markets are eagerly anticipating the FOMC’s decision on Wednesday. The markets have already factored in a 25 basis point rate cut, making the Fed chief’s remarks the primary focus. A shift away from a dovish tone would be viewed negatively from a market standpoint, although this scenario is unlikely.

The US services PMI reported a robust figure of 58.5%, suggesting a strong economy, which bodes well for the markets. Export sectors such as IT and pharmaceuticals will gain from a weakening rupee, while importers will face higher costs that could affect their stock prices.

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

The Nifty 50 index extended its sell-off for the seventh consecutive session, weighed down by a sharp decline in the IT sector. The Nifty IT index tumbled more than 2% after Federal Reserve Chair Jerome Powell remarked that there was “no hurry”; for rate cuts, dampening sentiment in tech stocks. Despite the weakness in IT, sectors like METAL, FMCG, and AUTO provided some support, limiting the overall decline. The Nifty 50 closed at 23,453.80, registering a loss of 78.90 points.

This consistent selling pressure has pushed the Nifty 50 near its five-month low, reflecting a bearish tone in the market. On the daily chart, the index has been trading below 200-days SMA for the past two sessions. The RSI is in oversold territory with a negative crossover, suggesting the possibility of some short-covering. However, there are no clear signs of a reversal in the chart patterns. Traders are advised to avoid carrying heavy positions and to maintain proper risk-reward strategies.

On the downside, the support levels are seen around 23,200 and 23,000, while on the upside, 23,800 may act as a strong resistance zone.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends Swan Energy, and Tata Motors November Future.

Swan Energy

Swan Energy witnessed a significant upside movement during Monday’s session, accompanied by higher volume activity. The stock has formed a Bullish Engulfing candlestick pattern on the daily timeframe, indicating strong bullish momentum in the near term.

Additionally, the price has settled above the 21-day moving average (DMA) with rising volumes, reflecting increased buying interest among traders. Considering these factors, we anticipate a buying opportunity in Swan Energy around ₹547-548, with a stop-loss at ₹519 and upside targets of ₹575 and ₹594.

Tata Motors November Future (Sell)

The stock has experienced a sharp sell-off over the past two months, declining more than 28% from its September high of 1103. On the weekly chart, the stock has been consistently declining without any significant buying momentum. Furthermore, the price has breached the 50% retracement level and is sustaining below it, reinforcing the bearish trend.

However, the daily RSI is in the oversold territory and appears overstretched, indicating the possibility of a pullback move. Traders are advised to adopt a sell-on-rise strategy around ₹790-795, targeting potential downside levels of ₹770 and ₹755, with a stop-loss placed above ₹810.

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.