Shares to buy in short term: Mehta Equities’ Riyank Arora suggests SBI, Adani Total Gas, ONGC stock to buy

Stock market today: On Tuesday, India's key stock indexes traded lower, driven by broader declines in pharmaceutical stocks influenced by US manufacturing data, which overshadowed the rise in Mahindra & Mahindra due to positive expectations regarding future earnings.

The Nifty 50 decreased by 0.33% to 24,380.70, while the Sensex fell by 0.23% to 80,613.72 as of 14:06 IST.

Indian stock markets started the day with caution on Tuesday, with benchmark indices showing little movement as investors looked for important global indicators, especially the US Federal Reserve's two-day policy meeting commencing later today.

Ongoing geopolitical tensions between India and Pakistan also impacted investor sentiment, although foreign portfolio investors (FPIs) continued to invest in Indian equities.

Analysts believe that India is experiencing sustained FPI inflows, which are supporting the Indian markets despite the geopolitical concerns. The US markets are expected to trade within a narrow range leading up to the Federal Reserve meeting starting today. Experts anticipate that interest rates will remain unchanged at this meeting, with a potential rate reduction in June.

Amid volatility Riyank Arora, Technical Analyst of Mehta Equities Ltd, suggests Nifty 50 key levels to be 24,200, followed by 24,000 and 23,850. Further, Arora recommends SBI, Adani Total Gas, and ONGC stock to buy in the short term.

Market Views - Riyank Arora, Technical Analyst, Mehta Equities Ltd

Nifty 50

Nifty 50 continues to consolidate within a defined range for the past 10 consecutive sessions, showing both upward and downward volatility. Technically, the RSI (14) near 67 on the daily chart indicates steady momentum, and the index has held firm above the breakout level of 23,850 since April 21. Key support levels are placed at 24,200, followed by 24,000 and 23,850. On the upside, immediate resistance lies at 24,600, with further hurdles at 24,750 and 24,800, and the major resistance at the psychological mark of 25,000.

Bank Nifty

Bank Nifty has sustained well after breaking above its previous all-time high of 54,467 and has remained in a consolidation phase for the past 10 sessions. The index is showing a healthy technical setup, supported by strong momentum in PSU banks, with RSI (14) around 65. Key supports are at 54,700, 54,500, and 54,200. Resistance is seen at 55,350, and a breakout above this level may open the way to 55,600 and 56,000 levels, keeping the near-term bias positive.

Shares to buy for short term

Riyank Arora recommends these three stocks in the short term - State Bank of India (SBI), Adani Total Gas, and Oil and Natural Gas Corporation (ONGC).

1. SBI – Buy

CMP: ₹790 | Stop Loss: ₹760 | Target: ₹860

SBIN has broken out of an inverted head and shoulders pattern, a bullish setup. RSI (14) is at 52, and the stock has successfully retested its neckline, offering a good risk-reward trade. Based on the pattern's target projection, the stock could move towards ₹860 and above.

2. Adani Total Gas – Buy

CMP: ₹665 | Stop Loss: ₹640 | Target: ₹710

Adani Total Gas has broken out above its key resistance at ₹655 and closed strong. The RSI (14) at 65 and a fresh MACD crossover show rising momentum. The stock also cleared both trendline and swing high resistances, supporting the bullish view.

3. ONGC – Buy

CMP: ₹239 | Stop Loss: ₹230 | Target: ₹255

ONGC is trading above its anchor VWAP support of ₹236.93, with a bullish candlestick pattern. The stock is aligned with key EMAs and the 50-day SMA, making the risk-to-reward attractive. While RSI (14) is neutral at 48, technical indicators suggest that momentum could improve soon.

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.