Nuvama to BEL- Prashanth Tapse of Mehta Equities suggests stocks to buy in the short term

Stock market today: Indian stock indices declined during a widespread sell-off on Friday, primarily driven by pharmaceutical shares following US President Donald Trump's announcement of a 100% tariff on branded and patented medications, while IT stocks dropped after Accenture's revenue forecast pointed to weak demand.

As of 11:28 IST, the Nifty 50 and the BSE Sensex both fell by 0.50%, reaching 24,758 . 20 and 80,752.81 points, respectively, and are set for their sixth consecutive day of losses.

On Thursday, Trump initiated a new wave of stringent tariffs on a wide array of imported products, including branded and patented medications as well as heavy-duty trucks, which will take effect on October 1.

The US represents slightly more than one-third of India's pharmaceutical exports, which largely consist of less expensive generic alternatives to popular medications. Exports to the US increased by 20%, totaling approximately $10.5 billion in fiscal 2025.

Although most of India's pharmaceutical exports are generic drugs, there remains uncertainty regarding whether complex generics and biosimilars may be included in the tariff restrictions in the future, according to market experts.

Market Views - Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

Nifty 50 closed below the crucial 25,000 mark, reflecting sustained selling pressure and forming a bearish structure. A further dip below 24,850 could accelerate the decline toward 24,750–24,600. Indicators such as RSI and momentum remain weak, signaling bearish bias in the near term. Resistance is capped around 25,000. Unless Nifty 50 reclaims this level, sentiment is likely to stay negative, and traders should adopt a cautious, sell-on-rise approach.

Bank Nifty

Bank Nifty slipped below 55,000, signaling weakness in frontline banking stocks. Immediate support is at 54,700, followed by 54,400 if selling persists. The index faces stiff resistance near 55,300, and only a breakout above this could revive bullish sentiment. Momentum indicators remain under pressure, confirming the weak outlook. The short-term trend is negative, and traders are advised to remain cautious, deploying strict stop-losses while adopting a sell-on-rise strategy.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term - Nuvama Wealth Management Ltd, SBI Cards and Payment Services Ltd, and Bharat Electronics Ltd (BEL).

Nuvama Wealth Management – Buy | CMP: ₹6,032 | SL: ₹5,800 | Target: ₹7,500

Nuvama share price has gained strength after consolidating around the ₹6,000 zone, supported by strong volumes and positive momentum. The breakout structure suggests room for a further rally if the stock sustains above current levels. Technical indicators remain supportive, pointing to higher targets of ₹7,500 in the short to medium term. Traders may consider buying on dips, maintaining a stop-loss at ₹5,800 to protect against volatility and manage risk effectively.

SBI Card – Buy | CMP: ₹887 | SL: ₹860 | Target: ₹1,000

SBI Card share price is showing strong momentum after rebounding from recent support zones. The stock is trading above its short-term averages, supported by consistent demand in the financial services sector. RSI and volume trends are improving, which indicates scope for further upside. A sustained move above ₹887 can trigger a rally toward ₹1,000. Traders may initiate fresh long positions at CMP, while keeping a strict stop-loss at ₹860.

BEL – Buy | CMP: ₹403 | SL: ₹390 | Target: ₹440

BEL share price continues to display bullish momentum, with strong support from robust order flows in the defence segment. The stock is trading above key moving averages, reflecting sustained buying interest. RSI is trending higher, suggesting more upside potential. If the stock sustains above ₹403, it may move towards ₹440 in the short term. Traders should consider buying on dips, while maintaining a protective stop-loss at ₹390 to mitigate downside risk.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.