Stocks to buy or sell: Osho Krishan of Angel One suggests buying Wipro, Dr Reddys shares to buy in the near-term

Stock market today: Benchmark indices Sensex and Nifty 50 were experiencing a decline during the afternoon session on Thursday, largely due to rising crude oil prices stemming from the escalating crisis in West Asia.

Additionally, diminished global market performance and persistent outflows of foreign funds also unsettled investor sentiment, analysts noted.

At 13:35 IST, the Sensex dropped by 256.91 points or 0.33%, reaching 76,606.80. Meanwhile, the Nifty 50 fell by 53.40 points or 0.23% to 23,807. Earlier in the session, the Sensex had plunged 992.53 points or 1.29% to 75,871.18. The Nifty 50 also saw a decline of 310.55 points or 1.30%, hitting 23,556.30.

Subsequently, the BSE benchmark index was reported at a decrease of 432.04 points or 0.56%, standing at 76,459.62. The Nifty 50 showed a loss of 129.70 points or 0.50%, at 23,745.55.

Foreign Institutional Investors (FIIs) sold equities valued at ₹6,267.31 crore on Wednesday, as per exchange information. On the other hand, Domestic Institutional Investors (DIIs) purchased stocks amounting to ₹4,965.53 crore.

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

The daily chart of Nifty 50 index indicates that bearish momentum has resumed after a brief pause earlier in the week. Following Tuesday’s temporary stabilization, the market witnessed the formation of a large bearish candlestick on Wednesday, signalling renewed selling pressure. Notably, this move also filled the bullish gap that had been created on Tuesday, reinforcing the view that the recent rebound lacked strong follow-through.

Earlier in the week, the index had broken decisively below the crucial 24,300 zone, a level that served as a significant support throughout the previous year and also coincided with the 89-WEMA. Tuesday’s recovery now appears to have been largely a technical retest of this breakdown level rather than the beginning of a sustained reversal. The subsequent decline suggests that the market is attempting to re-align with its broader downward trajectory. Such retests are common in price action and often precede the continuation of the prevailing trend.

Looking ahead, the 24,300 level is expected to act as immediate resistance. Above this, the 24,500 zone, where a bearish gap was formed earlier in the week is likely to present another strong hurdle. Unless the index manages to reclaim and sustain above these levels, any near-term bounce is likely to remain limited. On the downside, Tuesday’s low near 23,700 serves as the first level of support. A break below this may open the door toward the next important support zone near 23,500, which aligns with the 61.8% Fibonacci retracement of last year’s rally from around 21,750.

Given the current technical setup, market sentiment is expected to remain cautious, with elevated volatility. Traders are advised to avoid aggressive positioning and closely monitor global cues, as they are likely to influence the near-term direction of the market.

Stocks To Buy on Thursday- Osho Krishan

On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks - Dr Reddys Laboratories Ltd, and Wipro Ltd.

Wipro share price has experienced a sharp correction over the past couple of weeks, declining more than 20% in the current calendar year and entering oversold territory. Recent technical indicators show a positive crossover from oversold levels in the RSI, suggesting an early sign of potential reversal. Additionally, the counter is placed near its multi-month support zone, indicating capped downside risk.

Hence, we recommend a BUY in Wipro around ₹200-195 with a Stop Loss of ₹182 and a Target of ₹226-230.

Dr Reddys Laboratories has rebounded from its multi-week support of 1,180-1,200 subzone and has surged above all its significant EMAs and 200 DSMA. Technically, there has been multiple positive crossovers among the EMAs, adding to the bullish quotient. Also, the counter is placed at multi-week resistance zone and is with the inline parameters a strong breakout is anticipated in the near term.

Hence, we recommend a BUY in Dr Reddys around ₹1,310-1,300 with a Stop Loss of ₹1,260 and a Target of ₹1,380-1,400.

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.