Stock market today: The near-term trend of Nifty 50 value remains positive, say experts.
Equities ended higher on Monday, despite mixed trends from global peers. The Nifty 50 value index added 84 points to the previous close and closed at the 24,586 mark, while BSE Sensex surged 145 points to finish at 80,664. The Bank Nifty index ended 177 points higher at 52,455. Volumes in the cash market of NSE fell by 15.5 per cent to Rs 1.32 lakh crore. The broader market saw the mid-cap index, too, staying ahead of the Nifty 50-barometer even as the advance-decline ratio improved to read 1.09:1. Most sectors ended in the green with buying seen in PSU Bank, Oil & Gas, Realty, and Healthcare.
PSU’s banking segment rose by 3 per cent following media reports that the government is likely to introduce amendments to the Banking Regulation Act 1949 and other legislation to push through reforms during the coming session of Parliament for the Budget.
Nagaraj Shetti, Senior Technical Research Analyst with HDFC Securities, said, “The near-term trend of Nifty remains positive. Having sustained above the hurdle of 24,400 levels (1.618% Fibonacci extension), there is a higher possibility of a further gradual upside move in Nifty towards 24,950 in the next week. Immediate support for Nifty today is at 24,450.”
While commenting on the outlook of Bank Nifty today, Om Mehra, Technical Analyst, SAMCO Securities, said, “Bank Nifty closed the session at 52,455.90, up by 177 points or 0.34%. The index was seen trading in a narrow range but remained above the key support of 52,000. Below 51750, it would further slip as the support of the rising trend line comes near. Above 52800, it would resume its bullish trend. Primary trend is positive and any short-term correction is considered a buying opportunity for the next session.”
Follow Buy/Sell Experts in Stock Ideas
Nifty 50 Value: Now, talking about what stocks to buy today, the stock market experts—Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi—recommended buying these five buy-sell stocks: UTI AMC, Oracle Financial Services Software or OFSS, Max Financial Services, KFin Technologies, and Bajaj Auto.
Sumeet Bagadia today's stock recommendations
UTI AMC: Buy at ₹1,077, target ₹1,130, SL ₹1,040. The analysis of the daily charts is positive for the coming week. At present, the advance exceedingly appears to be steady on a higher top and higher bottom formation. More importantly, it had formed a higher high and higher low pattern, and recently stock’s upside swing has successfully breached the neckline, making a new week high. This breakout may indicate that a major follow-through uptrend increase in price may be expected in the stock.
OFSS: Buy at ₹10,922.75, target ₹11,500, stop loss ₹10,555. Recently in the daily chart, OFSS posted a very strong breakout above the crucial resistance zone from ₹10,050 to ₹10,550 and rising volumes are strongly backing this breakout, which indicates good buying interest on every rise.
Ganesh Dongre buys or sells stocks
Max Financial Services: Buy at ₹1,037, target ₹1,080, stop loss ₹1,010. The chart seems to have a breakout point at ₹1,037, which indicates a probable uprising trend in this stock. This breakout has been further complemented by a Relative Strength Index, which is still turning up, indicative of more buying momentum. So, armed with such technicals, traders can buy on dips and enter the stock at a lower price point. A stop loss of ₹1,010 would also lead to control over the risk. The strategy has the near-term target price at ₹1,080 with a probable gain as the up-trend in stock picks further momentum.
KFin Technologies: Buy at ₹756, target ₹785, stop loss ₹735. On the daily chart, a technique reversal formation. More precisely, the formation of a bullish engulfing pattern is quite a strong indication of an upside move. The technical pattern residual of essence is considered to be bullish and hence generates an indication that the specified stock shall rise in price. Given this set-up, one could buy this stock with a stop loss of ₹735 as a risk management measure. The target price for this trade is ₹785, which offers an opportunity of gains as this stock witnesses more bullishness.
Bajaj Auto: Buy at ₹9,675, target ₹9,950, stop loss ₹9,500. In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹9,950. The stock can, therefore, hold at the support level of ₹9,500 and bounce toward ₹9,950 in the short term. So, a trader can use a stop loss of ₹9,500 for a target price of ₹9,950.