Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy in the short term | Stock Market News

Stock market today: The Nifty 50 and Sensex, two key domestic indices, bounced back from earlier declines on Friday, driven by gains in the information technology sector amid expectations for a US interest rate reduction, while Bharti Airtel continued its upward trend after Jefferies included the telecom company in its list of top Asia picks for 2025.

At 14:19 IST, Nifty 50 was trading at 24,739.15 points with a gain of 190.45 points or 0.78 per cent, while the Sensex was at 82,005.07 with a rise of 723.05 points or 0.89 per cent.

Nonetheless, analysts have indicated that Indian markets are still in a consolidation phase due to weak global signals and in anticipation of the Federal Reserve’s rate decisions. That said, there is potential for Indian markets to experience an upswing in the lead-up to the budget, particularly in railway, defense, and other sectors.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market currently faces both challenges and opportunities. The challenge stems from the renewed selling activity by Foreign Institutional Investors (FIIs), who offloaded stocks worth ₹3,560 crores yesterday. Considering the elevated valuations in India, FIIs are expected to continue selling at each rise in the market.

The November Consumer Price Index (CPI) inflation rate stood at 5.48%, which falls within the Reserve Bank of India’s (RBI) acceptable range. If this trend persists, it could create the possibility for a rate cut by the Monetary Policy Committee (MPC) in February. However, the strengthening dollar poses a risk as it might result in imported inflation.

Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

# Long story short: Until, the big FIIs camp return to their buying desk, volatility will continue to be the hallmark and Nifty 50 and its stocks just can’t not stomach higher.

In yesterday’s trade, Nifty 50 bears controlled Dalal Street and most importantly, for the 5th day in a row.

# Dampening sentiments were also negative catalysts like Middle-east geopolitical risks, trade-war fears, and the rising US bond yields.

# The bear machete is seen regrouping this Friday the 13th to install a major market fall.

# We say so because, despite signs of easing India’s inflation, the CPI inflation remained firmly above the RBI’s 4% averages, raising risks for the RBI to commence its rate-cutting cycle only in the first quarter of 2025.

# The Federal Open Market Committee’s interest rate policy decision is on December 18. The Fed is widely expected to opt for another quarter-point cut, but that said, volatility may be the hallmark as the Fed may signal a short-term pause or dial back expectations for cuts in 2025.

# The Negative Catalyst: The November US Producer Price Index showed that inflation remains a tough beast to tame.

# FIIs selling actually seen haunting investors at Dalal Street as in yesterday’s trade they sold to the tune of ₹3,560 crores.

# Technically, confirmation of strength on Nifty 50 only above 24,675 mark. Nifty 50’s make-or-break support seen at 24,200 mark.

Stocks to focus: Three stocks to trade with interweek Strategy

Buy SIEMENS (CMP 7916): Buy between 7,825-7,850 zone. Stop at 7,653. Targets 8,000/8,129. Aggressive targets at 8,500. (Interweek Strategy). Rationale: Momentum oscillators in bullish mode. Probable upside Flag Pattern breakout. Key support near 7,727.

Buy HDFC Asset Management Company Ltd (CMP 4475): Buy between 4,425-4,460 zone Stop at 4271, Targets 4,621/4,865. Aggressive target at 5,000. Interweek Strategy Rationale Probable upside consolidation breakout with key support near 4,291.

BUY HCL Technologies Ltd (CMP 1956): Buy between 1,900-1,910 zone Stop at 1,819, Targets 1,969/2,000. Aggressive target at 2,050. Interweek Strategy Rationale Signaling a massive breakout from an upside consolidation. Momentum oscillator turning bullish with key support near 1,901.

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.