Stocks to buy or sell: Osho Krishan of Angel One suggests buying Paras Defence, Zensar Tech on Diwali

Stock Market News: The domestic benchmark indices, Nifty 50 and Sensex, commenced trading flat on Diwali, as both indices faced a tug-of-war between bears and bulls. The Nifty 50 remained stable with a slight decline at 24,326.75, down by 0.06% during the initial session, while the Sensex index also edged down slightly, trading nearly flat at 79,859.62 points, down 0.10%. Analysts indicated that India requires actions on both fiscal and monetary fronts to enhance growth.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that this Diwali, we may not witness significant activity in the market. India has struggled in October, with the Nifty index declining by 5.7%, while markets in the US and Japan have shown positive returns, and China and Hong Kong have experienced substantial outperformance.

The underachievement of India's market can be attributed to high valuations, continuous selling by foreign institutional investors (FIIs), and worries regarding slowing earnings growth. In the short term, this situation is not expected to change significantly, although there may be minor recoveries.

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

The Indian equity markets had a quiet session ahead of the monthly expiry for Nifty 50, trading within a narrow range. While it was a challenging day for bullish investors, it also presents an opportunity to assess market dynamics. The reversal of gains following Tuesday’s upswing offers insights into current investor sentiment and potential strategies moving forward.

The broader market has shown notable resilience despite some challenges in the key indices. The advance-decline ratio is leaning towards the bulls, which is a positive sign. On the daily chart, prices are currently range-bound, forming a ‘Doji’ pattern just below the 100 DEMA, reflecting the cautious sentiment among participants. Interestingly, the intraday range is coiling into a symmetrical triangle, indicating that a decisive breakout from key levels could create meaningful momentum. With the monthly expiry approaching, 24,500 presents a significant resistance level, and a sustained move above this could pave the way toward 24,600 and even further gains. On the flip side, 24,200 and 24,100 are important support levels to watch. Overall, there are opportunities for upward movement if these key levels are navigated effectively.

Traders are encouraged to monitor important levels and strategize their trades accordingly. As we approach the F&O expiry session, we can look forward to increased volatility and potential adjustments in many individual stocks. This presents a valuable opportunity for traders to concentrate on specific stock opportunities and make informed, selective choices.

Stocks To Buy on Thursday - Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks - Paras Defence and Space Technologies Ltd, and Zensar Technologies Ltd.

Paras Defence and Space Technologies

Paras Defence has experienced a significant correction of nearly 40 percent from its peak and has plummeted to the 200 SMA on the daily chart. Historical data suggests that this support level has previously acted as a strong foundation, leading to an upward trend for the stock. Moreover, the technical indicators have transitioned from overbought to oversold levels, signaling a potential reversal in the trend.

Hence, we recommend to BUY Paras Defence around 1,000-980, keeping a stop loss of 900 for a potential target of 1,200-1,240.

Zensar Technologies

Zensar Technologies has undergone a notable correction from its peak at 832 towards the 200 SMA on the daily chart. Over the past few sessions, it has demonstrated a consolidation breakout with increasing momentum and has now headed for its cluster of EMAs on the daily timeframe chart. The MACD indicator has shown a positive crossover from the lower zone, indicating a potential reversal in the current trend.

Hence, we recommend to BUY Zensar Technologies around 700-690, keeping a stop loss of 656 for a potential Target of 770-780.

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.