Technical Picks: Vinay Rajani of HDFC Securities suggests these three stocks to buy in the near-term | Stock Market News

The major domestic indices, Sensex and Nifty 50, opened modestly higher on Thursday, reflecting positive trends in global markets. This came after US inflation data aligned with expectations, boosting the likelihood of a Federal Reserve rate cut in the upcoming week. The Nifty IT index rose by 0.83%, supported by 1-2% increases in Tech Mahindra, Persistent Systems, Coforge, LTIMindtree, Tech Mahindra, and Mphasis. Nonetheless, the benchmark indices eventually fell into negative territory. Market analysts suggest that the market’s range-bound consolidation pattern is likely to persist.

At 14:06 IST, the Nifty 50 index rose by 191.05 points, or 0.78%, reaching 24,658.50 points. Meanwhile, the Sensex increased by 690 points, or 0.85%, reaching 81,646.33 points.

Stocks predominantly advanced in Asian markets on Thursday after another historic session on Wall Street, driven by inflation figures that bolstered predictions of a US interest rate reduction next week. Simultaneously, investors stayed optimistic about additional efforts to boost China’s economy. On Wall Street, the Nasdaq closed above 20,000 points for the first time, while the S&P 500 was just shy of achieving its own record.

“The bull run in the US is continuing unabated with Nasdaq setting a new record and closing above 20000 yesterday. The Magnificent Seven stocks continue their resilience and uptrend despite elevated valuations. The strength of the mother market, which indicates that the global market rally is intact, is a support for other markets, too.

Even though the US CPI inflation in November at 2.7% has come a bit above the October numbers, this was on expected lines and, therefore, the expectation of a 25bp rate cut by the Fed is intact. In India the November CPI numbers to be released today will be keenly watched,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities

Nifty 50

Nifty 50 has been consolidating in the narrow range for the last 5 trading sessions. However, lackluster moves in the indices hide more than it reveals. Benchmark Nifty 50 index is range bound for the fifth consecutive day. Momentum and volatility has been shallow as markets remained in the narrow range of 250 odd points through these five days. Advancing shares have outnumbered declining shares for the fourteenth consecutive day, with an advance-decline ratio of 1.17 on the BSE.

This marks the first time in a decade that advancing shares have surpassed declining shares for fourteen straight days. Short term trend is still bullish as it is placed above its 10, 20 and 50 days EMAs. Short term support for the Nifty 50 is seen at 24,400, while resistance for the same is seen at 24,750. A decisive move above 24,750 is likely to open the next upside of around 24,900 in the near term.

Bank Nifty

Bank Nifty has been replicating the range bound move of Nifty 50 for last 5 trading sessions. The previous breakout level for Bank Nifty is seen at 52760, which can act as an immediate support for the index. Primary trend of the index is still bullish as it is placed above 10, 20, and 50 days EMAs. Immediate resistance for the index is placed at 53,888, above which we can expect index to move towards a new all-time high beyond 54,468. Dips should be utilized to accumulate longs in the index.

Technical Picks: Stocks to buy in the near-term

Buy Karur Vysya Bank (236): | Targets Rs. 269 | Stop-loss ₹220

Stock price found support on upward sloping trend adjoining the lows of week ended 12 th May 2023 and 7 th June 2024. On week ended 18 th Oct 2024, stock broke out from the downward sloping trend line on the weekly charts, which indicates resumption of primary uptrend. Weekly stochastics oscillator has turned bullish. Price breakout was accompanied by rise in volumes. Stock price has been forming higher tops and higher bottoms on the weekly charts.

Buy APL Apollo (1599): | Targets Rs.1740 | Stop-loss ₹1515

Stock price has broken out from downward sloping trend line on the daily chart. Stock price has ben rising with rise in volumes. Stock is placed above all important moving averages, indicating bullish trend on all time frames. RSI and MACD have turned bullish on the daily charts. Metal sector has gained back its bullish momentum and that is likely to continue.

Buy Mastek (3290): | Target Rs. 3550 | Stop-loss ₹3150

Stock price is on the verge of breaking out from the consolidation which has been holding for last three weeks. Primary trend of the stock has been bullish as it has been placed above short to medium term moving averages. IT sector has been in to bullish momentum phase on short to medium term charts.

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.