Buy or sell: Osho Krishan of Angel One recommends buying Godrej Consumer Products and HDFC Bank stocks today
- Buy or sell stocks: Osho Krishan has recommended two stocks to buy today - Godrej Consumer Products Ltd and HDFC Bank Ltd.
Stock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, ended Wednesday's trading session in red amid weak global cues, and as Asian markets witnessed mixed trends.
The 30-share BSE Sensex ended lower by 434.31 points or 0.59% at 72,623.09 level while the Nifty 50 closed at 22,055.05 level, down 141.90 points or 0.64%.
On Wednesday's morning session, the Nifty 50 touched a record high for the third consecutive session amid a broad rally in metal stocks. Metals rose 1.9%, led by a 3% rise in aluminum producer Hindalco after its US subsidiary Novelis filed for a US IPO.
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The Israeli strike, profit booking, FII selling patterns, Nvidia's forthcoming results which alarmed investors, and the Federal Open Market Committee (FOMC) minutes were some of the key factors that contributed to Wednesday's market fall.
"The Indian market is facing stiff resistance at higher levels; the valuation of a broader index is at a significant premium, leading to an unfavourable risk reward, which influences investors to book profits. Global markets treaded cautiously awaiting the US Fed minutes, while Chinese markets were buoyed by policy interventions. Concerns lingered since investors were heavily betting on a US Fed rate cut, which is put at risk by January's higher-than-expected inflation," said Vinod Nair, Head of Research, Geojit Financial Services.
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Stock Market Recap
Decoupling with the bleak global cues, our domestic market started the session on a positive note, with the benchmark soaring to a new high. However, barring the initial hour of trade, the bulls missed out on momentum and lost control of the markets. The consolidation zone from the last two sessions provided some cushion, and the bulls tried recouping the losses. Still, in the latter half, an intense bout of profit booking dragged Nifty 50 towards the psychological mark, building up sentimental pressure on the traders’ fraternity. Amidst all the hustles throughout the day, the Nifty 50 index settled the session at 22,055, eroding 0.64 percent from the last closure, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
"The winning streak for the benchmark index finally came to a halt after six consecutive sessions. Also, the development of the last three sessions got eloped with one day fall, though the 22K mark showed its significance in cushioning the index by the fag end of the session," highlighted Osho.
Stock Market Tips
Eventually, the broader view remains intact with the bullish biases, but it seems really challenging to hold on to higher grounds with conviction. Hence, one is required to have a pragmatic approach of the ‘Buy on dips’ and ‘Sell on the Rise’ until we see a decisive participation of the bulls in carrying momentum, advised Krishan.
Nifty 50 Outlook
As far as levels are concerned, a series of support zones could be seen on an immediate basis, starting from the bullish gap of 21,969–21,953 to the placement of 20 DEMA at 21850. On the flip side, strong resilience can be seen from 22,150–22,200, and an authoritative closure above the same could only provide thrust to propel the index higher for the 22,350–22,400 zone in the comparable period. Meanwhile, the high-beta and supportive index Bank Nifty needs to be watched closely for developments, as its setup would certainly dictate the intermediate trend for the benchmark, said Osho.
Stock Recommendations For Today by Osho Krishan
On stocks to buy today, Osho Krishan recommended two stocks - Godrej Consumer Products Ltd and HDFC Bank Ltd.
Godrej Consumer Products Ltd
Godrej Consumer Products Ltd has been in a secular uptrend, hovering above all its EMAs on the daily time frame. Recently, the stock clocked a new high and then underwent consolidation (the time-wise correction phase). At present, the stock is on the verge of a breakout and seems poised to re-test the ATH zone. Also, the stock has the strong support of 21 DEMA, followed by a rising trendline of recent swing lows, adding to the better risk-reward for the comparable period.
“Hence, we recommend to BUY Godrej Consumer Products at ₹1,230-1,232, keeping a stop loss of ₹1,190 for a positional target of ₹1,300,” said Krishan.
HDFC Bank Ltd
HDFC Bank Ltd has witnessed a steep correction from the ₹1,680 odd zone to shed nearly 18 percent within a quick span of time. The technical parameters have turned extremely oversold, and with the recent developments from the lows of ₹1,360–1,380, the stock seems to take a breather and could be seen as an opportunity to accumulate in a staggered manner from a short- to medium-term perspective.
"Hence, we recommend to BUY HDFC Bank at ₹1,430-1,420, keeping a stop loss of ₹1,380 for a positional target of ₹1,500-1,515," said Osho.
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.
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