Stocks to buy: Nagaraj Shetti recommends eClerx Services, UNO Minda shares to buy in the short-term
Domestic indices Nifty 50 and Sensex each gained 0.35% on September 3, supported by banking stocks that raised $136.4 billion. Oil prices eased slightly, while global cues influenced a cautious market, following recent geopolitical developments and prior declines in both indices.
Stock market today: Domestic benchmark indices Nifty 50 and Sensex gained 0.35% each on Thursday, 3 September, led by banking stocks, after lenders mobilised a higher-than-expected $136.4 billion through the RBI’s foreign-currency deposit and borrowing schemes. The fund mobilisation is expected to strengthen liquidity ahead of the festive season.
The gains come after both benchmarks declined around 1% over the previous three sessions, weighed down by rising crude oil prices and global bond yields as investors reassessed expectations for interest rates to remain elevated for longer.
However, at 12:23 IST, the Nifty 50 was flat at 23,905 . 80, while the BSE Sensex was also flat trading at 76,604.93.
Meanwhile, oil prices eased on Thursday after their recent rally, with Brent crude trading close to $95 a barrel, while Asian equities advanced and US stock futures edged higher.
Renewed fighting between the US and Iran had pushed crude prices sharply higher earlier this week. US President Donald Trump said on Wednesday that he did not expect the US bombing campaign to continue for “much longer”.
Brent crude, the international benchmark, fell 0.4% to $95.26 a barrel, while US West Texas Intermediate (WTI) crude slipped 0.1% to $90.84 a barrel.
Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
The downtrend continued in the market on Wednesday on the back of weak global cues and Nifty 50 closed the day lower by 141 points amidst minor recovery from the day's low. A small green candle was formed on the daily chart with minor lower shadow, and the opening downside gap has been filled partially. Technically, this market action signals minor buying at the lower support of 23,800 (previous opening upside gap of 27 July), but still there is no confirmation of any bottom reversal in the market.
The overall trend of Nifty 50 remains weak. The ongoing bearish pattern like lower tops and bottoms signal sell on rise opportunity on any pullback from here. Hence, any bounce back from here could find strong overhead resistance around 24,100-24,200 levels. However, further weakness below 23,800 could drag Nifty 50 down to the next important support of 23,600 in the near term.
Stocks to buy
Buy eClerx Services at ₹2000, Target at ₹2,165, Stoploss at ₹1,920, Timeframe 2-3 weeks
The IT stock has been resilient during weak broader markets over the last few weeks. Presently, the stock price is in an attempt of breakout of larger consolidation movement. Weekly chart pattern also indicates bullish flag breakout around ₹2,000-2,020 levels. Volume and RSI patterns show a positive indication.
Sell UNO Minda at ₹1240, Target at ₹1,180, Stoploss at ₹1,270, Timeframe 2-3 weeks
The stock price broke down on Wednesday after forming a distribution-type pattern over the last few weeks. We observe a downside breakout from a consolidation pattern after the formation of a triple-top-type pattern. Volume and daily RSI indicate more weakness for the short term.
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.