Stocks to buy or sell: Dharmesh Shah of ICICI Securities recommends buying NTPC today

  • Stocks to buy or sell: Dharmesh Shah of ICICI Securities recommends buying NTPC this week.

Dhanya Nagasundaram
Published7 Oct 2024, 09:00 AM IST
Stocks to buy or sell: Dharmesh Shah of ICICI Securities recommends buying NTPC this week.
Stocks to buy or sell: Dharmesh Shah of ICICI Securities recommends buying NTPC this week.

Stock Market News: Friday saw the Sensex and Nifty 50, the domestic benchmark indices, undergo their fifth consecutive session of decline, resulting in their worst week in over two years due to ongoing concerns about the escalating conflict in the Middle East. In addition, growing foreign outflows contributed to the negative sentiment among investors.

The Nifty 50 index experienced a 0.93% drop to 25,014.6, while the Sensex declined by 0.98% to 81,688.45 on that day. Over the week, both benchmarks recorded losses of about 4.5%, marking their most significant decline since June 2022, primarily driven by a 2% slump on Thursday.

Also Read | Nifty, Sensex log worst week in two years: What should be your trading strategy?

The bearish sentimentpersisted because investors are keeping an eye on the growing tension in the Middle East and have implemented a sell-on recovery strategy, according to Vinod Nair, Head of Research at Geojit Financial Services. The rapid spike in crude prices might be limited by OPEC+'s increased output. With growing crude prices and money flowing to less expensive regions like China, market pessimism is predicted to persist in the near future.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting is scheduled to occur from October 7 to 9, 2024, and the market will be closely monitoring it. The results of the meeting will be announced on Wednesday, October 9. It is expected that the RBI will keep the benchmark repo rate unchanged at its current level during the upcoming policy review, as it has remained steady at 6.5% for the last nine consecutive meetings up to August 2024.

The second-quarter earnings season is commencing with major companies such as TCS, Tata Elxsi, DMart, and IREDA, among others, which will influence movements in specific stocks.

Also Read | Jupiter Wagons, K.P. Energy among others to trade ex-dividend next week: List

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

Nifty 50 snapped three-week winning streak tracking escalating geopolitical worries and settled the week with a biggest cut since June-22 of 4.3% at 25,050 amid heavy sell off by FII’s. The index started the week on a negative note and accelerated downward momentum on the breach of last week’s low of 25800. As a result, weekly price action resulted into sizable bear candle, indicating corrective bias as contrary to our view, Nifty 50 breached key support of 25,800 and settled below it.

In the upcoming eventful week, we believe strong support for the Nifty 50 is placed at 24,800, holding above which would keep pullback options open amid oversold conditions (Daily stochastic oscillator is placed at 5). In the process, volatility to remain high while discounting development on ongoing geopolitical concerns coupled with RBI Policy and start of Q2FY25 earning season which would further dictate the trend. Only a decisive close below 24,800 would lead to extended correction towards 24,400.

Structurally, key point to highlight is that, in CY24, price wise index has not corrected for more than 5-6% while sustaining around its 50 days EMA and time wise such corrections have been arrested within 6-7 sessions and subsequently stage a decent up move. In current scenario, with 5% correction, index has approached 50 days EMA amid oversold conditions. Thereby, a decisive close above previous session’s high would be the first sign of pause in downward momentum that would open the door for pullback towards 25,500 in coming week.

Also Read | Oil soars 10% in 5 days, logs biggest weekly gain in one year; Brent sits at $78

Crude oil would be the key monitorable amid escalation of geopolitical worries. The current up move appears to be more of technical pullback from oversold territory. We expect, it to face stiff resistance in the 80-82 zone.

Sectorally, IT, Metal, Pharma are expected to relatively outperform while BFSI, capital goods, oil & gas offers bargain buy opportunity.

Stocks To Buy This Week - Dharmesh Shah

Buy NTPC in the range of 420-432 for the target of 485 with a stop loss of 394.

Also Read | FPIs take U-turn in Oct, offload ₹27,142 crore in Indian equities; here’s why

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 04/10/2024 or have no other financial interest and do not have any material conflict of interest.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:7 Oct 2024, 09:00 AM IST
Business NewsMarketsStock MarketsStocks to buy or sell: Dharmesh Shah of ICICI Securities recommends buying NTPC today

Most Active Stocks

Indian Oil Corporation share price

144.10
03:58 PM | 29 OCT 2024
-3 (-2.04%)

Federal Bank share price

200.70
03:58 PM | 29 OCT 2024
16 (8.66%)

Tata Steel share price

150.05
03:59 PM | 29 OCT 2024
0.6 (0.4%)

Tata Motors share price

843.05
03:59 PM | 29 OCT 2024
-35.65 (-4.06%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Gillette India share price

9,412.30
03:40 PM | 29 OCT 2024
859.4 (10.05%)

Deepak Fertilisers & Petrochemicals Corporation share price

1,233.65
03:56 PM | 29 OCT 2024
103.05 (9.11%)

Multi Commodity Exchange Of India share price

6,834.25
03:45 PM | 29 OCT 2024
272.25 (4.15%)

City Union Bank share price

176.55
03:29 PM | 29 OCT 2024
4.8 (2.79%)
More from 52 Week High

Firstsource Solutions share price

343.25
03:50 PM | 29 OCT 2024
-29.5 (-7.91%)

Sapphire Foods India share price

324.15
03:29 PM | 29 OCT 2024
-21.55 (-6.23%)

Ksb share price

791.65
03:53 PM | 29 OCT 2024
-40.25 (-4.84%)

Quess Corp share price

663.05
03:44 PM | 29 OCT 2024
-32.65 (-4.69%)
More from Top Losers

JSW Infrastructure share price

316.15
03:53 PM | 29 OCT 2024
28.65 (9.97%)

Deepak Fertilisers & Petrochemicals Corporation share price

1,233.65
03:56 PM | 29 OCT 2024
103.05 (9.11%)

Federal Bank share price

200.70
03:58 PM | 29 OCT 2024
16 (8.66%)

Home First Finance Company India share price

1,193.80
03:29 PM | 29 OCT 2024
90.9 (8.24%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    79,805.00-490.00
    Chennai
    79,811.00-490.00
    Delhi
    79,963.00-490.00
    Kolkata
    79,815.00-490.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts