Stocks to buy: Nagaraj Shetti recommends Aurobindo Pharma, NMDC shares to buy

Stock market today: The domestic benchmark indices reversed early gains and entered negative territory after noon on Thursday due to profit booking and weak global signals.

The Sensex increased by 303.09 points or 0.36%, reaching an intraday peak of 82,579.16 in the morning session. The broader Nifty 50 rose by 90.45 points or 0.35% to hit 25,572.95. The initial uptick was driven by IT stocks following strong earnings from Nvidia.

Nonetheless, the indices began to lose their gains later on. As of approximately 13:18 IST, the Sensex was down by 281.81 points or 0.34 % at 81,994.26, while the Nifty 50 fell by 62 points or 0.25% to 25,420.95.

According to analysts, a significant factor impacting sentiment was the increase in crude oil prices, which lingered around a seven-month peak due to uncertainties regarding US-Iran nuclear negotiations and concerns about supply disruptions.

Profit-taking became evident across multiple sectors, especially in FMCG, metals, and real estate stocks, following the market's initial rise. Analysts observed that even with robust institutional buying, the markets found it challenging to sustain their momentum.

Experts noted that weak global indicators further affected investor sentiment. Major Asian stock indices, such as Shanghai's SSE Composite and Hong Kong's Hang Seng, were trading lower, while Wall Street futures indicated a muted start for US markets. Furthermore, the monthly derivatives expiry contributed to increased volatility, as traders adjusted or rolled over their positions.

Persistent geopolitical tensions, especially the revived worries regarding the US-Iran nuclear situation, have made investors wary and played a role in the market's subdued performance.

Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities

Nifty 50

The market continued to show upmove amidst choppy trend on Thursday and is currently trading higher by 80 points. We observe a descending triangle type formation on daily chart and this is not a good sign for bulls to sustain the highs. Consistent lower top formation over the last few sessions as per daily chart indicates that the present upside could find strong hurdle around 25,600-25,650 levels in the short term. Immediate support is placed around 25,400-25,350.

Technical Picks: Stocks to buy in the short-term

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term - Aurobindo Pharma Ltd, and NMDC Ltd.

Buy Aurobindo Pharma at ₹1,243, Target at ₹1,305, Stoploss of ₹1,205, Timeframe 1 week

The stock price was moving in a larger consolidation pattern over the last few months. Present sharp upmove is expected to break above the consolidation resistance around ₹1,260 levels soon. Volume has started to expand during upside breakout in the stock price and daily RSI shows positive indication.

Buy NMDC at ₹82.90, Target at ₹88, Stoploss of ₹80, Timeframe 1 week

After a sharp weakness in the mid part of Feb, the metal stock price has bounced back smartly from the range bound action this week. The bearish downside gap of 13th Feb has been filled partially. Volume pattern and bullish RSI indicates more upside in the near term.

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.