Stocks to buy: Nagaraj Shetti recommends Avantel, Jtekt India shares to buy in the short-term
The Indian stock market had a positive turn on July 9, with Sensex and Nifty 50 both up 0.7%. Broad-based buying occurred, with realty and healthcare leading the gains. Despite geopolitical tensions affecting market sentiment, Nifty 50 showed resilience by bouncing back significantly.
Stock market today: The Indian stock market rebounded on Thursday, 9 July, with the benchmark Sensex and Nifty 50 rising nearly 0.7% each, recovering part of the steep losses suffered in the previous session, when investors lost more than ₹8 lakh crore in market capitalisation.
Buying was broad-based, with most sectoral indices trading in positive territory. The realty index led the gains, followed by healthcare, midcap healthcare, consumer durables, pharma and media. Banking, FMCG and financial services stocks also advanced, while IT remained the only major sector in the red amid continued weakness in technology shares. Metal stocks traded largely flat.
At 11:54 IST, the Nifty 50 was up 0.70% at 24,047.75, while the BSE Sensex gained 0.72% to 77,051.28.
The recovery came a day after Indian equities posted their sharpest single-session decline in three months. On Wednesday, both benchmark indices plunged around 2.1% after the US military launched fresh strikes on Iran to keep the strategic Strait of Hormuz open for shipping, hours after US President Donald Trump declared that an interim peace agreement was "over."
The renewed geopolitical tensions pushed Brent crude to near $79 a barrel, raising concerns about higher import costs, inflationary pressures, and slower economic growth for India, a major crude oil importer.
Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After a dramatic decline against the backdrop of rising geopolitical tensions in the last session, Nifty 50 has bounced back smartly so far today and is currently trading 165 points higher. The sharp weakness on Wednesday has not damaged the medium- to long-term trend of the Nifty 50, but the short-term has turned down. Hence, further upside above the 24,250-24,300 levels could signal more short-covering in the coming sessions. Immediate support is placed at 23,800.
Buy Avantel at ₹184.80, Target at ₹196, Stoploss at ₹179, Timeframe 1 week
Avantel share price has been moving in a range-bound action and attempting to break above the consolidation resistance around 183-186 levels. We observe the formation of a larger ascending triangle pattern, and the stock price is now on the verge of a breakout. Daily RSI and volume pattern signals positive bias.
Buy Jtekt India at ₹146.80, Target at ₹155, Stoploss at ₹141, Timeframe 1 week
After a sharp weakness over the last five sessions, the Jtekt India share price bounced back strongly on Thursday and is currently trading at its highs. The stock is on the weekly chart placed at the edge of moving above the crucial downtrend line hurdle at the ₹148-149 levels. The volume pattern and RSI indicate a positive signal.
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.