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Business News/ Markets / Stock Markets/  Stocks in focus: Ruchit Jain of 5paisa recommends ONGC and Birlasoft Futures today

Stocks in focus: Ruchit Jain of 5paisa recommends ONGC and Birlasoft Futures today

Stocks in focus: Ruchit Jain of 5paisa has recommended two stocks today - Oil and Natural Gas Corporation Ltd (ONGC) and Birlasoft Futures.

Stocks in focus: Ruchit Jain of 5paisa recommends Oil and Natural Gas Corporation Ltd (ONGC) and Birlasoft Futures this week.Premium
Stocks in focus: Ruchit Jain of 5paisa recommends Oil and Natural Gas Corporation Ltd (ONGC) and Birlasoft Futures this week.

Stock Market News: The domestic benchmark equity indices, the Sensex and the Nifty 50, began Tuesday's trading day down, following their Asian peers and weak global cues. This was primarily due to investor fears already heightened by geopolitical tensions in the Middle East, as well as anticipation of a probable delay in US Federal Reserve rate cuts.

Tuesday's start of Asian markets was unfavourable mirroring the previous day's weaker closing on Wall Street due to the US retail sales data that was better than anticipated and the dwindling likelihood of an early rate cut by the US Federal Reserve. 

At 9:46 IST, the NSE Nifty 50 was down 0.37% at 22,189.50, while the S&P BSE Sensex was down 0.51% to 73,026.84.

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Also Read: Sensex Today Live Updates : Sensex down 300pts, Nifty at 22190, weighed by weak global cues; IT, Bank, FS, Health drag

Amidst rising  treasury yields, sticky inflation, Middle East tensions, and an increasing US Dollar Index, investors opted to steer clear of Dalal Street on Monday's session. 

The 30-share BSE Sensex closed at 73,399.78 level, down 845.12 points, or 1.14%. The NSE Nifty 50 ended at 22,272.50, down 246.90 points, or 1.1%.

According to experts, there is further cause for concern when the India VIX surged by almost 12 levels today, closing at 12.46, up 8.07%. All the sectoral indices finished in red, with the Media Index losing the most, followed by the public sector undertakings (PSU) Banking Index on Monday's session.

Also Read: Stocks to buy: SBI Card, CDSL, Jindal Saw among 8 stocks that can rise 5-31% in next 3-4 weeks, say analysts

Market Review and Outlook - Ruchit Jain

Our markets started the week on a negative note owing to the rising geopolitical tensions seen over the weekend. Nifty 50 witnessed some pullback from the opening hour low of 22,260, but it witnessed selling pressure at higher levels and ended the day around 22,270 with a loss of over a percent, said Ruchit Jain, Lead Research Analyst at 5paisa.

Nifty 50 started a corrective phase last week from its resistance of 22,750, which was the higher end of a rising channel and the retracement hurdle. The negative global news flows dampened sentiments, and hence, we witnessed a broad market sell-off where all the sectoral indices, except oil and gas, ended in the red. The RSI oscillator gave a negative crossover, indicating weak momentum, and heavyweights from the banking and IT spaces corrected, which led to major pressure. In the coming session, it will be crucial to see if the index manages to take support around the 40 DEMA, which is placed around 22,200.

This will be an important level for a pullback move in the index. Below this, the next supports are placed around 22,000, which is the channel (trendline) support, followed by the 89 DEMA at 21,720. On the higher side, the index needs to surpass 22,500 for a resumption of the uptrend, said Ruchit.

Also Read: Rupee opens at a record low of 83.51 against the US dollar

Share market tips today

Given the global uncertainty, we believe the near-term momentum would be more influenced by the news flows and the global market movement, and hence, traders should prefer to stay light on trading positions and be very selective in stock specific trades, advised Jain. 

Stocks in focus today - Ruchit Jain

On stocks in focus on Tuesday, Ruchit Jain recommends two stocks - Oil and Natural Gas Corporation Ltd (ONGC) and Birlasoft Futures.

ONGC (Buy)

Ruchit stated the stock was consolidating in a range since the last couple of months, which was a time-wise correction within an uptrend. Prices have given a breakout from a ‘Diamond’ pattern, which is a bullish pattern as per technical analysis. The breakout has been supported by very high volumes, and the RSI oscillator is hinting at further positive momentum. Hence, traders can look to buy the stock in the range of 280–277 for a potential target of around 303. The stoploss on long positions should be placed below 265.

Birlasoft Futures (Sell)

Jain explained that IT stocks have seen underperformance in the recent past, and there seem to be no signs of reversal yet. This stock within the midcap IT basket has given a breakdown from a ‘Head and Shoulders’ pattern, which is a bearish pattern in technical analysis. The momentum is negative, and hence short-term traders can look to sell Birlasoft April Futures. In the range of 710–715, for potential target around 677. The stop loss on short positions should be placed above 730.

Also Read: Gold rate today: Iran-Israel conflict fuels gold price today despite US dollar hitting 5-month high

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 decisions.


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Published: 16 Apr 2024, 10:00 AM IST
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