Shares to buy or sell: Sachin Gupta of 5paisa recommends CG Power, Infosys today - 25 February

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, faced downward pressure, with both index values continuing to decline due to cautious sentiments from investors in light of a difficult global economic landscape.

In early trade, the Sensex gained 117.57 points to reach 74,571.98, while the Nifty 50 rose by 31.3 points to 22,584.65. Analysts noted that the domestic market's decline corresponds with the global risk-averse mood, as worries about economic slowdown, escalating inflation, and geopolitical tensions persistently undermine investor confidence. The possible reinstatement of "Trump Tariffs" in March and April introduces further uncertainty.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the market is in an oversold condition, large-cap valuations appear to be reasonable, and there is a significant amount of short selling in the market. This situation could lead to a rebound, especially if there is a short covering.

However, the key concern remains the ongoing selling by Foreign Institutional Investors (FIIs) in the cash market, which has reached 43,200 crores in February to date. The uncertainty surrounding Trump’s tariffs will continue to impact the markets. On the domestic front, we need signs of a recovery in growth and earnings in India.

Market Review and Outlook - Sachin Gupta, Senior Research Analyst at 5paisa

Nifty 50: (22,553)

The recent drop in the Nifty 50 index is closely tied to the weak performance of the IT sector, which holds a significant share in the index. As of February 24, 2025, the Nifty 50 closed at 22,553.35, down 1.06%, marking its lowest level in eight months.

Leading IT stocks, including Wipro, HCL Tech, TCS, and Infosys, were among the biggest losers, each falling nearly 3%. Technically, Nifty 50 has support around 22,500 and resistance near 22,850. If the index falls below this support level, it may decline towards 22,300/22,100 levels, whereas holding above it could trigger a recovery move.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends CG Power and Industrial Solutions Ltd, and Infosys Ltd.

CG Power (Buy)

The stock is showing signs of a potential bullish reversal, currently trading at 602.50, up 2.13% from the previous close. The stock is hovering above the 20-day EMA, indicating short-term strength. The Relative Strength Index (RSI) at 47.53 suggests neutral momentum, leaving room for further upside without being overbought. Additionally, the ADX at 39.52 signals a well-established trend, and if buying momentum picks up, the stock could challenge its resistance at 655/670.

Given its strong long-term fundamentals and improving short-term technicals, CG Power could witness further upside, A breakout above 610 could accelerate gains for short term.

Infosys (Sell below support level)

Infosys Ltd is currently exhibiting bearish momentum, trading at 1764.00, down 2.80% from the previous close. The stock is below key moving averages, including the 50 & 100-day EMA, signaling a persistent downtrend. The RSI at 34 indicates weakness, nearing oversold levels, while the MACD confirms ongoing negative momentum.

If stock breaks below its support at 1725, it could trigger further downside towards lower levels. Resistance at 1830 remains a key hurdle, and failure to break above it may reinforce the bearish trend. Investors should remain cautious, as continued weakness in the IT sector and global economic uncertainties could further weigh on the stock.

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.