Shares to buy: Riyank Arora of Mehta Equities suggests these four stocks to buy in short term
- Shares to buy: Riyank Arora recommends buying these four stocks in the short term - Ashok Leyland, Federal Bank, Tata Motors, and Infosys.
Stock market today: On Tuesday, the domestic benchmark indices, Nifty 50 and Sensex, showed positive movement. This upward trend was primarily driven by HDFC Bank and Reliance Industries, the two largest contributors to the Nifty 50. Analysts believe that the recent shift towards more attractive valuations has encouraged this rise, especially after the indices experienced a correction.
By 12:47 IST, the Sensex had gained 560.47 points, or 0.70%, reaching 80,808.55, while the Nifty 50 increased by 161.70 points, or 0.67%, standing at 24,437.75.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the market's inherent resilience, as evidenced by its recent recovery. At present, the market is focusing more on potential policy responses to the slowdown in GDP growth rather than the slowdown itself. The rebound in banking stocks observed yesterday indicates that the market is anticipating a CRR (Cash Reserve Ratio) cut on Friday, which is expected to improve banks' profitability. Furthermore, the strong performance of major companies like Reliance and HDFC Bank also contributes to the market's stability.
Mid-market Views - Riyank Arora, Technical Analyst, Mehta Equities Ltd
Nifty 50
Nifty 50 is trading above its major support level of 23,800 and below its major resistance level of 24,500. This overall 700-point range defines the benchmark's current outlook. As the index nears its major resistance, the risk-reward ratio currently favours short positions, with a stop-loss set at 24,500 and potential targets at 24,100 and 24,000 in the short term, and 23,800 if weakness persists further.
However, a break above 24,500 on a daily closing basis will invalidate this view.
Bank Nifty
Bank Nifty has its major resistance at approximately 52,800, beyond which the psychological hurdle of 53,000 lies. A major support is positioned near 51,300, around 800 points below the current level. Given the risk-reward ratio, we believe short positions are preferable, with a stop-loss set at 52,800 and potential downside targets at 51,500 and 51,300.
However, a break above 53,000 on a daily closing basis will invalidate this view.
Shares to buy for short term
Riyank Arora recommends buying these four stocks in the short term - Ashok Leyland, Federal Bank, Tata Motors, and Infosys.
Ashok Leyland
- Current Market Price (CMP): ₹229.82
- Stop Loss (SL): ₹222.00
- Targets: ₹244.00
Analysis: Ashok Leyland has shown a strong breakout above its recent swing high resistance level of ₹230.65 and is now re-testing the breakout level. With the overall trend being positive and the stock experiencing a throwback to its support zone accompanied by good volumes, it is trading well above the trendline. We expect the stock to move higher toward potential targets of ₹244.00 and above. However, a stop-loss should be set at ₹222.00 to manage risk effectively.
Federal Bank
- Current Market Price (CMP): ₹209.08
- Stop Loss (SL): ₹200.00
- Targets: ₹225.00
Analysis: Federal Bank has witnessed a strong breakout above its swing high resistance level of ₹209 and is now experiencing a throwback to the resistance-turned-support zone. With the RSI (14) near 57 and a decline in volume during the throwback, the stock is expected to move higher towards potential targets of ₹225.00 and above. However, a stop-loss should be set at ₹200.00 to manage risk effectively.
Tata Motors
- Current Market Price (CMP): ₹794.20
- Stop Loss (SL): ₹760.00
- Targets: ₹850.00
Analysis: Tata Motors has touched its major support mark of 760.00 and seen to be bouncing well from lower levels.. The stock is seen to be reinforcing the bullish trend. The RSI (14) is at 39, suggesting positive momentum and stock coming up from its oversold conditions with the consolidation around ₹760 has turned into a robust support level. We anticipate the stock to move towards its target of ₹850.00, with a stop-loss set at ₹760.00 to minimize downside risk.
Infosys
- Current Market Price (CMP): ₹1,884.00
- Stop Loss (SL): ₹1,830.00
- Targets: ₹2,000
Analysis: Infosys is witnessing strong upward momentum after breaking out of its consolidation zone at ₹1,875. The stock has shown consistent higher highs and higher lows, reflecting a strong bullish trend. The RSI (14) is hovering near 53, suggesting there is room for further upside. With volumes picking up and the stock holding above key support levels, it is well-positioned for a move toward ₹2,000.00. A stop-loss at ₹1,830.00 is recommended to manage potential risks effectively.
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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