Stocks to buy: Nagaraj Shetti recommends Anant Raj, Rico Auto shares to buy in the short-term
The Nifty 50 and BSE Sensex showed minor gains on May 7, aided by declining crude oil prices. The Nifty 50 was up 0.07% at 24,355. Analysts predict potential upside targets of 24,600-24,800 in the coming week.
Stock market today: The domestic benchmark indices, the Nifty 50 and BSE Sensex, traded largely flat on Thursday, 7 May, as easing crude oil prices helped offset profit-taking following the sharp rally in the previous session.
As of 13:52 IST, the Nifty 50 was up 0.07% at 24,355 . 8, while the Sensex edged 0.04% higher to 78,009.74.
Both benchmark indices had surged around 1.2% each in the previous session and fluctuated between gains of 0.4% and losses of 0.2% in early trade on Thursday.
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1What are the short-term stock recommendations from Nagaraj Shetti?⌵
Nagaraj Shetti recommends buying Anant Raj shares at ₹554.50 with a target of ₹585 and a stop loss of ₹537, for a timeframe of 1 week. He also suggests buying Rico Auto Industries shares at ₹124.25 with a target of ₹132 and a stop loss of ₹119, also for a 1-week timeframe.
2How is the Nifty 50 performing, and what are its near-term targets?⌵
The Nifty 50 is in a consolidation phase with a positive bias, trading higher and nearing a resistance level around 24,400. Near-term upside targets are expected around the 24,600-24,800 levels by next week, with immediate support at 24,200.
3What factors are influencing the Indian stock market's positive sentiment?⌵
The Indian stock market sentiment is positively influenced by easing crude oil prices and growing expectations of a potential peace deal between the US and Iran. These factors are helping to offset profit-taking and supporting a constructive broader trend.
4What are the key risks associated with buying Godrej Industries, Ajanta Pharma, and L&T Finance?⌵
Godrej Industries faces risks from high debt levels and interest coverage concerns. Ajanta Pharma's risks include heavy dependence on the US market, regulatory compliance, and pricing pressures. L&T Finance's primary risks are tied to its retail-heavy, rural-focused lending portfolio, high debt, and reliance on parent support.
5What is the outlook for the Nifty 50 in the short term, considering recent market movements?⌵
The Nifty 50 has shown a strong rebound, holding the 24,000 level and showing signs of hope. While volatility may continue, the recent thrust suggests potential for further trends. However, it's noted that the market is still navigating global and domestic factors.
Asian markets also traded higher amid reports that the US and Iran were moving toward a potential agreement to end the conflict, triggering a sharp correction in global crude oil prices.
Brent crude, which had declined 7.8% in the previous session, hovered near the $102 per barrel mark during early Asian trading hours on Thursday.
Lower crude oil prices are viewed positively for India, the world’s third-largest crude importer, as they help ease inflationary pressures, support economic growth, and improve corporate earnings outlook.
Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After witnessing a sharp bounce back from intraday lows on Wednesday, the Nifty 50 has shifted into a consolidation phase with positive bias so far on Thursday and is currently trading higher by 37 points. The range movement in the last few sessions has been broken on the upside, and the Nifty 50 is currently at the edge of surpassing another resistance level around 24,400. This is a positive indication, and one may expect the Nifty 50 to surge higher in the near term. The next upside targets to be watched are around the 24,600-24,800 levels by next week. Immediate support is placed at 24,200.
Buy Anant Raj at ₹554.50, Target at ₹585, Stoploss at ₹537, Timeframe 1 week
Anant Raj share price has witnessed a sharp upmove this week, breaking above the crucial down-sloping trend line on the weekly chart at the ₹500-510 levels, and is currently trading higher. We observe a bullish chart pattern, with higher tops and bottoms in the weekly timeframe. Volume expanded during the stock price's upside breakout, and the daily/weekly RSI indicates a positive signal.
Buy Rico Auto Industries at ₹124.25, Target at ₹132, Stop Loss at ₹119, Timeframe: 1 week
After witnessing a minor downward correction amid range movement last week, Rico Auto Industries share price has broken out of its consolidation so far on Thursday and is currently trading higher. A bullish chart pattern, such as higher tops and bottoms, remains intact on the weekly chart. Daily/weekly RSI and volume patterns are indicating a positive bias for the stock price ahead.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.