Stocks to buy or sell: Osho Krishan of Angel One suggests buying City Union Bank, Sapphire Foods today

Stock Market News: The recovery phase in the Indian stock markets extended into Thursday, with both indices rising during the initial trading session.

The Nifty 50 index started at 23,377.25 points, reflecting an increase of 164.05 points or 0.71%, while the Sensex index commenced at 77,317.18 points, up by 593.10 points or 0.77%. Analysts highlighted that selling pressure from bears, driven by negative sentiments, poses a challenge for the bullish trend. For the Indian markets to experience a robust recovery, it is essential to lessen the magnitude of foreign outflows.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that a relief rally in India is likely forthcoming, but its longevity will be contingent upon the Indian macroeconomic factors, especially the recovery of GDP and earnings growth. Anticipations surrounding the budget can support a market rally, but ultimately, it will be overshadowed by the dynamics of GDP and earnings growth.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The Indian equity markets appear tentative, lacking clarity in trends over the last couple of trading sessions. The benchmark index experienced a narrow range of just 150 points, characterized by some choppy movements, ultimately settling on a subdued note around the 23,200 zone.

The day was marked by a notable struggle between the counterparties, which is evident from the Advance-Decline ratio. Despite this intense competition, uncertainty continues to loom over the markets, leading to a lackluster performance from the benchmark index. As a result, there were no significant developments in the broader market landscape during the day. The bearish gap around 23,340-23,345 withholds intermediate resilience, with the sturdy obstacle at 23,500-23,600. On the lower end, 23,100-23,000 seems to cushion any shortcomings, while the lower band of ‘Falling wedge’ is expected to remain the sacrosanct support for the time being.

Going ahead, it is anticipated that market volatility could surge amidst the upcoming weekly expiry, coupled with the current extremely oversold conditions. Given this outlook, it is prudent to adopt a cautious approach when navigating the market, as the potential for sudden price movements increases. Traders should consider closely monitoring their positions and be prepared to adjust their strategies as needed to mitigate risks.

Stocks To Buy on Thursday - Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks - City Union Bank Ltd, and Sapphire Foods India Ltd.

City Union Bank Ltd

City Union Bank has been moving in a cycle of higher highs and higher lows, and it is currently positioned near the lower end of this cycle, aligning with the 200 SMA on the daily chart. Historically, the 200 SMA has acted as a support level during declines, and given the current setup, the stock appears to be poised for an upward move in the near future. Additionally, the 14-period RSI has shown a positive crossover near the oversold zone, indicating a bullish outlook for the stock.

Hence, we recommend to BUY City Union Bank around 165-160, keeping a stop loss of 152 for a potential Target of 182.

Sapphire Foods India Ltd

Sapphire Foods has recently undergone a healthy correction from its highs of 375, moving towards 200 SMA on the daily chart, a level that has historically provided solid support. The technical structure shows positive signs, with the recent formation of higher highs and higher lows. Additionally, the stock's positioning near a cluster of its exponential moving averages (EMAs) indicates a strong foundation. Considering these technical factors, there is a promising opportunity for bullish momentum in the stock. This potential shift could open up new avenues for investors to benefit from upward price movements.

Hence, we recommend to BUY Sapphire Foods around 320, keeping a stop loss of 300 for a potential Target of 360.

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.