Stocks to buy: Nagaraj Shetti recommends Bank of Maharashtra, Ashok Leyland shares to buy in the short-term

Stock market news: The domestic benchmark indices remained largely negative on Thursday, 27 August, underperforming broader Asian markets. Gains from softer crude oil prices were offset by weakness in heavyweight HDFC Bank following a US class-action lawsuit against the lender.

The Nifty 50 declined 0.20% to 24,158 . 45, while the BSE Sensex was down 0.28% at 77,258.75 as of 11:37 IST.

HDFC Bank share price slipped around 1% after a securities lawsuit was filed in the US against the bank and two of its senior executives.

Meanwhile, Brent crude prices fell 0.5% to around $87.40 per barrel after Iran said it was working with Oman to finalise an agreement concerning the Strait of Hormuz. The development eased concerns over prolonged disruptions to oil supplies from the Middle East.

Qatar's Prime Minister is also scheduled to visit Iran on Thursday as diplomatic efforts continue to resolve the conflict, which is approaching its six-month mark.

Asian markets, meanwhile, traded higher, led by technology stocks after Nvidia reported quarterly revenue that more than doubled and projected third-quarter revenue above Wall Street expectations.

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

Nifty 50

After a sustainable upmove on Tuesday, the market could not show follow-through upside on Wednesday and closed the day lower. A long negative candle was formed on the daily chart due to downtick of 68 points registered in the closing CAS.

Though, technically this market action displays sharp reversal on the downside, but the overall market breadth remained positive with outperformance seen in broad market indices.

The underlying trend of Nifty 50 remains subdued within a high low range of 24,100-24,400 levels. A decisive breakout only above 24,400-24,500 levels not only confirm the valid breakout but also open more sustainable upside in the near-term. Any slide below the support of 24,100-24,000 is likely to trigger fresh weakness.

Stocks to buy

Buy Bank of Maharashtra at ₹85.55, Target at ₹92.50, Stoploss at ₹81.50, Timeframe 1-2 weeks

After showing a consolidation movement in the last few weeks, the Bank of Maharashtra share price has witnessed a sustainable breakout on Wednesday and closed higher. The larger degree bullish pattern like higher tops and bottoms has formed on the smaller and larger timeframe charts. Volume has started to expand during upside breakout in the stock price and daily RSI shows positive indication.

Buy Ashok Leyland at ₹179.30, Target at ₹190, Stoploss at ₹174, Timeframe 1-2 weeks

Ashok Leyland share price has been moving up consistently over the last few months. The positive pattern like higher highs and lows is observed on the daily and weekly timeframe chart. Current chart pattern indicates possible upside breakout of consolidation movement. Volume pattern and the daily 14 period RSI indicates positive outlook for the stock price ahead.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.