Shares to buy: Riyank Arora of Mehta Equities suggests these four stocks to buy in short term | Stock Market News

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, declined on Tuesday, primarily due to setbacks in the financial sector and Reliance Industries, as investors prepared for the Federal Reserve’s monetary policy meeting that will provide insight into the central bank’s future rate cut trajectory. HDFC Bank, the largest stock on the Nifty 50, fell by 1% after receiving a warning from the market regulator over alleged non-compliance regarding its disclosures related to a senior employee’s resignation. Reliance Industries, another major player on the Nifty 50, experienced a drop of more than 1%, causing the energy index to decline by 1.04%.

IT companies, which derive a significant portion of their income from the US, saw a 0.4% dip ahead of the Fed’s policy meeting decision on Wednesday, where a quarter-point rate cut is nearly assured with a probability of 95%, according to the CME FedWatch tool, as reported by Reuters.

By 12:11 IST, the Sensex had slumped 934.42 points, or 1.14%, reaching 80,814.15, while the Nifty 50 fell by 277.55 points, or 1.13%, standing at 24,390.70.

“Markets have already discounted a 25bp rate cut and, therefore, the focus will be on the Fed chief’s commentary. Any departure from a dovish commentary will be a negative from the market perspective. This is only a remote possibility. The US services PMI coming strong at 58.5% indicates a resilient economy, which augurs well for the market,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Mid-market Views – Riyank Arora, Technical Analyst, Mehta Equities Ltd

Nifty 50

Nifty 50 maintains its bullish momentum, moving closer to a critical resistance level at 24,700. A decisive breakout above this level could pave the way for further upside, with targets at 24,850 and 24,900. The zone between 24,590–24,625 is identified as a favorable entry point for long positions, offering an attractive risk-reward ratio. On the downside, the major support at 24,500 should act as a strict stop loss for traders. With the overall sentiment remaining positive, a buy on dips approach is recommended, as the index continues to exhibit strength and upward potential. Sustaining above the support zone will further reinforce the bullish trend.

Bank Nifty

Bank Nifty demonstrates a robust positive bias, trading near a favorable buying range between 53,300–53,500. A sustained move above the key resistance at 53,500 could trigger an upward rally, with targets projected at 54,000 and 54,400. This zone represents an excellent buying opportunity for traders aiming to capitalize on the bullish momentum. On the downside, the critical support level is pegged at 52,900, which should be treated as a stop loss to safeguard long positions. The overall trend remains firmly bullish, and adopting a buy on dips strategy is recommended. Continued strength above the support zone is likely to sustain the upward trajectory, offering potential for significant gains.

Shares to buy for short term

Riyank Arora recommends buying these four stocks in the short term – Housing & Urban Development Corporation Ltd (HUDCO), IRB Infrastructure Developers Ltd, ABB India Ltd, and One 97 Communications Ltd (Paytm).

HUDCO

Current Market Price (CMP): ₹255.80

Analysis: HUDCO has witnessed a breakout above the critical level of ₹255.80, supported by strong momentum indicators. The stock is trading above key moving averages, with the ADX around 30 and RSI at 68, indicating robust momentum. The technical setup suggests that the stock is likely to head towards its target levels as momentum picks up pace. Traders are advised to maintain a stop-loss at ₹244 to manage risk effectively.

IRB Infra

Current Market Price (CMP): ₹57.35

Analysis: IRB Infra has broken out above its trendline resistance at ₹57.35, supported by a retest near key moving averages. The ADX stands strong at 36, while the RSI at 62 reflects bullish momentum. The stock exhibits a robust technical structure with anchor VWAP support near ₹56, indicating further upside potential. A stop-loss at ₹55 ensures a favorable risk-reward ratio, as the stock is poised to reach its target levels.

ABB India

Current Market Price (CMP): ₹7,890

Targets: ₹8,400 and ₹8,500

Analysis: ABB India has broken out above its 9-period and 21-period exponential moving averages, signaling strong momentum. The stock is also trading comfortably above its 200-day moving average, reinforcing the bullish outlook. With RSI at 63 and exhibiting strength, the stock is well-positioned to achieve its upside targets. A strict stop-loss at ₹7,500 is recommended to manage downside risks effectively.

Paytm

Current Market Price (CMP): ₹1,007

Targets: ₹1,200 and ₹1,250

Analysis: Paytm is at a critical breakout level of ₹1,025, and a decisive move above this would confirm a buy recommendation. The RSI at 74 highlights strong momentum, suggesting significant upside potential. Traders should keep this stock on their radar, as a breakout could propel it towards the target levels. A stop-loss at ₹975 is advised to safeguard long positions.

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.