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Business News/ Markets / Stock Markets/  Buy or sell: Ruchit Jain of 5paisa recommends buying Astral and Bharat Electronics stock this week

Buy or sell: Ruchit Jain of 5paisa recommends buying Astral and Bharat Electronics stock this week

Buy or sell stocks: Ruchit Jain of 5paisa has recommended two stocks to buy this week - Astral Ltd and Bharat Electronics Ltd (BEL).

Buy or sell stocks: Ruchit Jain of 5paisa recommends buying Astral Ltd and Bharat Electronics Ltd (BEL) this week.Premium
Buy or sell stocks: Ruchit Jain of 5paisa recommends buying Astral Ltd and Bharat Electronics Ltd (BEL) this week.

Stock Market News: Domestic benchmark equity indices, the Sensex and the Nifty 50, began Tuesday's session with some minor cuts amid muted global cues. 

On Tuesday, the 30-share BSE Sensex opened lower by 66.60 points or 0.09% at 72,723.53 level while the Nifty 50 opened at 22,090.20 level, down 31.80 points or 0.14%.

Asian markets started Tuesday's session with some losses following record-breaking advances last week, as traders await the release of new economic data this week that may provide a better indication of when central banks may cut rates.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 27

The Sensex and the Nifty 50, ended Monday's session lower, dragged down by information technology (IT), metals, pharma, and bank stocks amid weak global cues ahead of key macro data.

IT stocks had a 1.17% decline ahead of a significant US inflation report that is expected to impact the Federal Reserve's future rate trajectory later this week. A sizable portion of IT businesses' income comes from the US. In anticipation of significant inflation data later in the week, particularly from Europe and Japan, Asian markets remained muted.

On Monday, the 30-share BSE Sensex ended lower by 352.67 points lower or 0.48% at 72,790.13 level while the Nifty 50 closed at 22,122.05 level, down 90.65 points or 0.41%.

Also Read: Stock market today: Sensex, Nifty 50 end lower amid weak global cues; IT, metals, banks drag

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Nifty 50 Outlook

The Nifty 50 started the week marginally negative, and the index traded within a narrow range throughout the day. Amidst stock-specific momentum, Nifty 50 ended the day above 22,100 with a loss of less than half a percent, said Ruchit Jain, Lead Research Analyst at 5paisa.

During last week, the Nifty 50 registered a new all-time high, but momentum has been lacking since the midcap index has entered a consolidation phase. In the Nifty 50, the recent up move has been because of some short covering, and we have not seen a significant long buildup. FIIs have reduced some of their net short positions, and their ‘Long Short Ratio’ now stands around 44 percent. In the options segment, the coming February series data hints at a support around the 22,000 mark, where high open interest of around 68 lakhs contracts is seen, while a similar quantum of open interest is seen in 22,200 and 22,300 call options, which seems to be the resistance zone. The 20 DEMA support is placed around 21,930, and hence, looking at the data, it seems that the index would consolidate within this broad range for now, explained Jain. 

Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, rise in oil prices to Bitcoin rally

Share Market Tips For This Week

"Only if the index gives a breakout beyond the range, coupled with the unwinding of positions in the above options, would lead to a directional move before expiry. Hence, traders are advised to trade with a stock-specific approach in the near term," advised Ruchit. 

Stocks To Buy This Week - Ruchit Jain

On stocks to buy this week, Ruchit Jain recommended two stocks - Astral Ltd and Bharat Electronics Ltd (BEL).

Astral Ltd

Ruchit stated the stock has given a breakout from its consolidation phase of eight months. The volumes have started increasing gradually, and the RSI oscillator is also hinting at positive momentum. Hence, short term traders can look to buy the stock around its current price of 2,084 and add on dips (if any) towards 2,000. The stop loss on long positions should be placed below 1,950 for potential targets around 2,200 and 2,300.

Bharat Electronics Ltd (BEL)

According to Jain, the stock has been forming a ‘Higher Top Higher Bottom’ structure and is thus in an uptrend. The recent upmove has been supported by rising volumes, while the RSI oscillator is also hinting at positive momentum. Hence, short-term traders are advised to buy the stock at its current price of 204 and add on any dips towards 197. The stop-loss on long positions should be placed below 193 for potential targets of 215 and 224.

Also Read: Indian stock market today: Day trading guide for Nifty 50 to Sensex, eight stocks to buy or sell today — Feb 27

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 decisions.

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Published: 27 Feb 2024, 10:01 AM IST
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