Stocks to buy or sell: Nuvama recommends Persistent Systems, PVR Inox, HPCL today - 22 January
- Stocks to buy or sell: Aakash K Hindocha of Nuvama Professional Clients Group recommends these three stocks today - Persistent Systems Ltd, PVR Inox Ltd, and Hindustan Petroleum Corp Ltd (HPCL).
Stock Market today: The domestic key indices, Nifty 50 and Sensex, began trading slightly higher on Wednesday, following a drop to a more than seven-month low in the prior session due to uncertainty regarding US policies under President Donald Trump and concerns about domestic corporate earnings.
As of 9:15 IST, the Nifty 50 had risen by 0.23% to reach 23,079.6 points, while the Sensex increased by 0.27% to 76,046.42. Both indices experienced a decline of around 1.5% on Tuesday, finishing at their lowest point since June 6, and volatility in the Indian markets surged to its highest level since early August.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the orders and announcements from President Trump have been quite disruptive. Initially, he is engaging in tough rhetoric to signal that more severe actions may follow. Trump's warning of implementing 100% tariffs on BRICS countries if they pursue dedollarization echoes his campaign statements from the election.
It seems that the markets reacted to this threat more seriously than expected. The Nifty 50 index has declined approximately 12% from its highs in September 2024. This market correction presents an excellent chance for long-term investors to acquire high-quality stocks.
Nifty 50 Outlook by Aakash K Hindocha, Deputy Vice President - WM Research, Nuvama Professional Clients Group
Nifty 50
With huge selling pressure seen on Nifty 50 right from the open, index tanked over 400 points from its opening highs in Tuesday’s session amid BSE Sensex weekly expiry. Nifty 50 has ended at a fresh 7 month closing low, after it broke its bearish cup and handle pattern on weekly charts ending last week. Furthering this, a slide towards 22,800 / 22,650 can now open up despite 23,000 being a psychological support on the index. A 5 year upward sloping trendline coincides the index level at 22,700 odd mark and hence the range of 22,650 – 22,800 could be seen as follow up target downside which could act as support for the ongoing sell off in Nifty 50.
Bank Nifty
All of its Monday’s gains, were washed off in Tuesday’s trading session. Having seen such a volatile price action, the index has given a bearish flag breakdown on short term hourly charts of Bank Nifty. This can further the ongoing correction in price by another 600-800 points downside. 47,800 odd appears to become an achievable target on Bank Nifty for this week’s trade.
Stocks To Buy or Sell on Wednesday - Aakash K Hindocha
On stocks to buy or Sell on Wednesday, Aakash K Hindocha of Nuvama recommended three stocks Persistent Systems Ltd, PVR Inox Ltd, and Hindustan Petroleum Corp Ltd (HPCL).
Persistent Systems Ltd (SELL): LCP: 5,896.70; SL: 6,155; TGT: 5,380
Persistent Systems has encountered strong resistance within two distinct channels representing short-term and long-term price trends. While the price remains within the long-term channel, it has breached and sustained below the short-term channel. This breakdown suggests potential for a further correction of 8-9% for this stock.
PVR Inox Ltd (SELL): LCP: 1,077.40; SL: 1,125; TGT: 980
The stock PVR Inox has been exhibiting a lower high–lower low pattern since August 2022. With a close below the previous swing low on both daily and weekly timeframes, the stock is likely to continue its downward trajectory to form a fresh lower low, with the next support anticipated around 980 levels.
Hindustan Petroleum Corp Ltd (BUY): LCP: 369.95; SL: 353; TGT: 405
After consolidating near its recent swing low for three consecutive days, Hindustan Petroleum Corp has shown signs of demand, recovering by 5% from these levels. Based on the current chart setup, further upward momentum is anticipated, with prices likely to test the supply zone at 410–420.
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.
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