Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to accumulate in the short term
- Shares to buy: Prashanth Tapse recommends accumulating these three stocks in the short term - ITC, Hindustan Unilever (HUL), and Tata Power.
Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, reversed their earlier gains on Friday as investors expressed worries over the potential effects of reciprocal US tariffs.
As of 13:56 IST, Nifty 50 was down 1.02% trading at 22,796.85 and Sensex slipped 0.81% trading at 75,525.50. Indian Prime Minister Narendra Modi proposed discussions on reducing tariffs, increasing purchases of US oil and gas, combat aircraft, and other concessions, according to US President Donald Trump after their meeting at the White House on Thursday.
Meanwhile, Trump is planning reciprocal tariffs on any country that imposes taxes on US imports, raising fears of a potential global trade conflict. However, the introduction of these tariffs will likely be postponed.
Globally, reports indicate that equities have improved as markets responded favorably to indications that reciprocal US tariffs might not be implemented for several weeks, creating the opportunity for negotiations that could lessen their severity.
Asian stocks increased for the third consecutive day, and S&P 500 futures suggested additional gains following Thursday’s close, which was near record levels on Wall Street.
European futures hinted at a slightly lower start. In the currency market, the dollar remained close to a two-month low while the yen appreciated.
Market Views - Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities
Nifty 50
The benchmark index is holding major support at 22,750, with an immediate resistance near 23,000. With the trend showing signs of consolidation, a breakout above 23,000 could push the index towards higher levels. A strong base near 22,750 makes it a good accumulation zone for positional traders. However, if 22,750 breaks then we can see major short selling coming in the benchmark.
Bank Nifty
Bank Nifty is approaching a crucial support level at 48,700, while an immediate resistance is seen at 49,800. The overall trend remains positive, and a breakout above 49,800 could lead to higher levels. Traders should maintain a strict stop loss below 48,700 and look for upside targets in the coming sessions. It is advised to keep a smaller position size and trade with strict stoplosses in the system for the benchmark.
Shares to buy for short term
Prashanth Tapse recommends accumulating these three stocks in the short term -
ITC
Accumulate | Buy Range: ₹390-400 | SL: ₹370 | Target: ₹440 - 450
The stock is trading near a strong support zone of ₹390-400 and is forming a base for a potential upside move. With increasing volumes and stability in price action, accumulation in this range looks promising for long-term gains. Recent price decline in share prices of ITC has pushed it to slightly oversold conditions which makes it an attractive buy.
Hindustan Unilever (HUL)
Accumulate | CMP: ₹2,300 | SL: ₹2,200 | Target: ₹2,500 - 2,600
The stock has corrected towards a key support level of 2,300, making it an attractive buy for long-term investors. With RSI stabilizing and signs of reversal appearing on technical charts, a move towards 2,500-2,600 is expected. With focus being on consumption theme and hindustan unilever being the safest bet, one should focus here as a safe stock and buy the dips.
Tata Power
Accumulate | Buy Range: ₹325 - 330 | SL: ₹310 | Target: ₹360 - 370
Tata Power is showing signs of strength near its support level of 325-330. With an uptrend intact, the stock looks set to move towards 360-370 levels in the coming sessions. A strict SL at 310 is advised to manage risk efficiently. With the current market scenario, it is advisable to focus on safe stocks and focus buying the dips slowly.
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.
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