Ruchit Jain of Motilal Oswal suggests Premier Energies, Varun Beverages shares to buy for the short term

Stock market today: Indian equity benchmarks opened sharply lower on Wednesday as investors reacted to renewed geopolitical uncertainty in the Middle East, rising crude oil prices and continued foreign fund outflows.

At 12:01 IST, the Sensex plunged 1,000 points to 73,650.08, while the Nifty 50 fell 300 points to 23,179 . 20.

Market sentiment remained fragile amid uncertainty surrounding ongoing US-Iran negotiations, with escalating tensions keeping energy markets on edge. Brent crude oil, the global benchmark, rose 0.89% to $96.85 per barrel, raising concerns over inflation and India's import bill.

Foreign institutional investors (FIIs) continued to exert pressure on domestic equities, selling shares worth ₹8,362.92 crore on Tuesday, according to exchange data.

Adding to investor concerns, the US Trade Representative (USTR) has proposed imposing an additional 12.5% tariff on imports from 54 countries, including India, alleging that these countries have inadequate measures to prevent the import of goods produced using forced labour.

The proposal follows investigations into 60 countries over what the USTR described as a failure to effectively enforce restrictions on products linked to forced labour. Market participants are closely monitoring the potential implications of the proposed tariffs on global trade flows and India's export-oriented sectors.

Market Review and Outlook - Ruchit Jain, Head - Equity Technical Research, Wealth Management, Motilal Oswal Financial Services

The Nifty 50 has seen some correction over the last week from its 50 DEMA resistance. The benchmark index has support around 23,100, which is the 61.8% retracement level of the recent upmove. We expect the index to consolidate in a range in the near term, with 23,100-23,000 as the immediate support zone.

On the higher side, 23,700 and 24,000 are the immediate hurdles that need to be surpassed for an upmove. Till the index consolidates, traders should focus on stock-specific opportunities from the broader markets.

Shares to buy or sell in the near-term - Ruchit Jain

On shares to buy or sell in the near-term, Ruchit Jain recommends Premier Energies Ltd, and Varun Beverages Ltd.

Premier Energies

Prices have been forming a ‘Higher Top Higher Bottom’ pattern, suggesting an uptrend. On the weekly charts, the stock has broken out of a ‘Bullish Flag’ pattern, and volumes have increased during the recent upmove. This indicates the stock can continue its uptrend and can relatively outperform in the near term. Hence, we advise traders to look for buying opportunities in the stock at Rs. 1080-1060, with a potential target of around Rs. 1250. The stop loss on long positions should be placed below Rs. 970.

Varun Beverages

The stock has seen an uptrend in the last couple of months, supported by improving volumes. Over the last few days, the stock has been attracting buying interest on declines, and the 20 DEMA has been acting as strong support. The RSI oscillator on the weekly and the monthly charts is hinting at a positive momentum, and hence we advise positional traders to accumulate the stock at the current price. Traders can buy the stock in the range of ₹534-527 for a potential target of around ₹584. The stop loss on long positions should be placed below ₹500.

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