Buy or sell: Osho Krishan of Angel One recommends CG Power and Voltas stock for March 14
- Buy or sell stocks: Osho Krishan has recommended two stocks for Thursday - CG Power and Industrial Solutions Ltd and Voltas Ltd.
Stock Market News: Domestic benchmark equity indices, the Sensex and the Nifty 50, opened the day lower on Thursday due to persistent profit-booking, while small- and mid-cap stocks continued to fall prior to of the findings of a stress test conducted on mutual funds in those market sectors.
The 30-share BSE Sensex opened lower by 194.40 points or 0.27% at 72,570.10 level while the Nifty 50 opened at 21,982.55 level, down 15.20 points or 0.07%.
Market volatility will present possibilities for cherry-picking, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Irrational exuberance will no longer be the main motivator; instead, reasonable valuations and quality standards will take precedence.
"This turbulence will separate the men from the boys. High quality private sector banks and the leading names in capital goods, telecom and autos can be accumulated in a calibrated manner. It is important to understand that India’s macro fundamentals continue to be good and the bull market is intact," added Vijayakumar.
The Sensex and the Nifty 50, slumped over 1% on Wednesday's trade. Market analysts believe that the major cause of the domestic stock market's decline was the sharp decline in the midcap and small-cap indices, which fell by 4 to 5% during today's trading session. Nifty MidCap 50 (-3.86%) and SmallCap (-5.3%) indices received fresh drubbing on Wednesday's session, and ended on an ugly note.
The 30-share BSE Sensex ended lower by 906.07 points or 1.23% at 72,761.89 level while the Nifty 50 closed at 21,997.70 level, down 338 points or 1.51%.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
Stock Market Recap
In recent sessions, broader markets faced significant downward pressure while benchmarks maintained higher levels. However, the Nifty 50 yielded to this pressure yesterday, breaking below crucial levels and signalling potential further declines in the near term. This was foreshadowed in previous outlooks, noting a 'Rising Channel' breakdown in the mid-cap index and advising caution, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
Nifty 50 Outlook
Presently, a 'Rising Wedge' breakdown on the Nifty 50's daily chart, coupled with negative divergence on momentum indicators, suggests challenging times for bulls in the short term. Consequently, more downward movement is expected, and traders are cautioned against attempting to catch the falling knife, explained Krishan.
Stock Market Tips
Any minor rebounds should be viewed as opportunities to lighten long positions and potentially initiate short ones. Near-term resistance is anticipated around the 22,200–22,250 range, while immediate support lies near the 50EMA, situated between 21,850 - 21,800, followed by a swing low at 21,500. While sharp market declines often disregard key supports, the weekly expiry may influence these levels. Given the expected heightened volatility, traders are advised to avoid undue risk and utilise the mentioned support and resistance levels for trade setups, according to Osho.
Stock Recommendations For Today by Osho Krishan
On stocks to buy and sell today, Osho Krishan recommended two stocks - CG Power and Industrial Solutions Ltd and Voltas Ltd.
CG Power and Industrial Solutions Ltd
CG Power and Industrial Solutions firmly withheld its sturdy technical structure amidst the rising uncertainty, showcasing resilience. From a technical standpoint, the counter seems to be in a time-wise correction phase post-the rally seen at the inception of the month and is comfortably hovering above all its EMAs in the daily time frame. After re-testing the bullish gap, it seems to continue its upward trend and looks lucrative from a risk-reward perspective.
"Hence, we recommend accumulating (BUY) CG Power in a staggered manner from ₹455-450, Keeping a stop loss of ₹430 for a positional Target of ₹490-495," said Osho.
Voltas Ltd
Voltas has undergone a correction after filling the bearish gap around the 1100 zone and has plummeted below the short-term moving average in the recent period. The mid-week correction from sturdy resilience has turned the technical parameters bearish, affirming some further downside room and momentum on the counter. From a risk-reward point of view, the counter seems decently placed and could garner a modest return from a short-term view.
"Hence, we recommend to SELL Voltas around ₹1,045–1,050, keeping a stop loss of ₹1,080 for a positional target of ₹1,010-1,000," said Krishan.
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.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High