Buy or sell: Ruchit Jain of 5paisa recommends buying Century Textiles and IRCTC today
- Buy or sell stocks: Ruchit Jain of 5paisa has recommended two stocks to buy today - Century Textiles & Industries Ltd and Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
Stock Market News: Domestic equity benchmark indices, the Sensex and Nifty 50, started Tuesday's trading mostly down but subsequently gained back some of their initial losses.
The 30-share BSE Sensex opened lower by 145.74 points or 0.20% at 74,022.30 level while the Nifty 50 opened at 22,458.80 level, down 23.20 points or 0.10%.
A bull market is defined by its capacity to reach new highs, according to Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services. This became clear when the Nifty 50 reached a new intraday high yesterday. In this optimistic scenario, which is marked by robust momentum and steady inflows in funds into the market, every decline will be bought, giving the market resilience.
The Sensex and Nifty 50, began the new fiscal year on an upbeat note, reaching new all-time highs in intraday trading before closing Monday's session in the green amid steady trends in Asian markets and foreign fund inflows.
Market experts believe that Monday's trading session was fantastic for the bulls camp on Dalal Street since it saw the Nifty 50 reach a new all-time high of 22529.95 thanks to bargain hunting and fear of missing out buying. Nifty Metal (+3.62%), Nifty Media (+4.73%), and Nifty Realty (+4.21%) were the sectoral indices that concluded with strong gains.Nifty SmallCap index rallied 3% MidCap gained 1.58%.
The 30-share BSE Sensex closed higher by 363.20 points or 0.49% at 74,014.55 level while the Nifty 50 ended at 22,462.00 level, up 135.10 points or 0.61%.
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Market Review and Outlook - Ruchit Jain
After the extended weekend, the Nifty 50 started the new financial year on a positive note, and it registered a new record high of 22,530. The index then consolidated within a narrow range throughout the day and ended below 22,500 with gains of six-tenths of a percent.
Markets have started the new financial year 2024-2025 on an optimistic note as the index registered a new record high. Even the stocks from the broader markets have witnessed good buying interest in the last couple of trading sessions. During last week, lesser short positions were rolled over in the derivatives segment from the March series to the April series. The RSI oscillator on major indices such as Nifty 50, Bank Nifty, and the Midcap index are positive, and hence, the broader trend remains positive. In the options segment, the 22,500 call option has the highest open interest amongst call options so far. One should keep a close watch on this, as any significant buildup could result in some range-bound sessions.
However, a continuation of the upmove above 22,530 could result in a rally towards 22,700–22,750 as per the retracement theory. On the lower side, 22,300–22,250 is seen as the immediate support, and in case of any intraday dips, traders are advised to look for buying opportunities.
Stocks To Buy Today - Ruchit Jain
On stocks to buy today, Ruchit Jain recommends two stocks - Century Textiles & Industries Ltd and Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
Century Textiles & Industries Ltd
Ruchit stated that the stock has given a breakout from a consolidation phase during the last week. The breakout has been supported by very high volumes, and the RSI oscillator is positive, indicating a resumption of the uptrend.
Short-term traders can look to buy the stock around ₹1,700 and look to add on any declines towards ₹1,650. The stop loss for long positions should be placed below ₹1,550 for a potential target of ₹1,950–2,000, advised Jain.
Indian Railway Catering and Tourism Corporation Ltd (IRCTC)
Jain explained that in the last few weeks, the stock went through a corrective phase along with the broader market correction. However, we did not see any high volumes during the correction, and the stock formed a support base around its 89 DEMA. Prices have now given a breakout above a falling trendline resistance, and hence, we advise short-term traders to buy the stock in the range of ₹960–950. The stop loss for long positions should be placed below ₹920 for a potential target of ₹1,040–1,050.
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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