Technical Picks: Nagaraj Shetti of HDFC Securities suggests these two stocks to buy this week | Stock Market News
Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced declines on Monday, impacted by losses in major financial and IT stocks as the US Federal Reserve’s interest rate decision approaches this week. At 14:10 IST, the Nifty 50 fell 0.39% to 24,671.25, while the Sensex dropped 0.4% to 81,821. The benchmarks achieved their longest consecutive weekly gains since July on Friday.
Investor attention is currently centered on the Federal Reserve’s monetary policy announcement scheduled for Wednesday, along with the bank’s insights regarding additional rate cuts. A reduction of 25 basis points is highly anticipated this week, with a 97% probability according to the CME FedWatch tool, as reported by Reuters.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the significant fluctuations observed last Friday reflect stark differences in opinions about the near-term direction of the market. The large positions in the futures and options market are contributing to this increased volatility.
While it is encouraging that foreign institutional investors (FIIs) have become net buyers in December after two months of consistent selling, investors should be cautious about assuming that this trend will continue. The strong US dollar and elevated bond yields present challenges for capital inflows. A slowdown in GDP growth along with stagnant earnings growth pose obstacles for a bullish market. A rally will be sustainable only if the data on growth and earnings indicates a recovery, which will require some time.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
After witnessing a sharp upmove from the day’s low on Friday, Nifty 50 consolidated so far today and is currently showing minor weakness. The overall near-term chart pattern remains positive and we expect Nifty 50 to find support around 24,600 levels and could bounce back from the lows in the next 1-2 days. Immediate resistance is placed at 24,800.
Technical Picks: Stocks to buy in the near-term
1. Buy Mazagon Dock Shipbuilders at ₹4,970, Target of ₹5,225, Stoploss of ₹4,830, Timeframe 1 week.
2. Buy Dalmia Bharat at ₹1,950, Target of ₹2,060, Stoploss of ₹1900, Timeframe 1 week.
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.
