Stocks to buy: Rajesh Palviya of Axis Sec suggests Natco Pharma, Eicher Motors, SBI Life shares today

Stock market today: The domestic equity markets started on a softer note on Friday, influenced by widespread selling in global indices.

The Nifty 50 opened at 26,109.55, reflecting a drop of -82.60 points (-0.32%), while the BSE Sensex commenced the session at 85,347.40, down -285.28 points (-0.33%).

Market sentiment was negatively impacted by ongoing global weakness, as major international indices experienced significant declines from their recent all-time highs. The effects of global risk-off signals were evident throughout Asian markets as well, although analysts commented that India may not experience as steep a decline.

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

Nifty 50

On the daily and weekly timeframe, the index is in a strong uptrend, forming a series of higher tops and bottoms. The index is well placed above its 20, 50, 100 and 200-day SMAs which reconfirms positive bias. The index has decisively surpassed the past 3-4 weeks' "multiple resistance" zone of 26,100 levels on a closing basis, which signals positive bias. From current levels, the crucial support zone is placed around 26,000-25,900 levels. The daily and weekly strength indicator RSI is in positive territory, which indicates sustained strength.

Stock Picks

Natco Pharma Ltd CMP: ₹869

With current price action, Natco Pharma share price has firmly surpassed the past couple of months' resistance zone of 850 on a closing basis, along with huge volumes. The daily "band Bollinger" buy signal shows increased momentum. The daily, weekly and monthly strength indicator, Relative Strength Index (RSI), is in favourable territory, indicating rising strength across all time frames. Currently, the stock is well placed above its 20 and 50-day SMA's which shows bullish sentiments.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is 950-1,020, and its downside support zone is the 855-810 levels.

Eicher Motors Ltd CMP: ₹7,125

In Thursday's session, Eicher Motors share price registered a 3.30% gain, registering a new all-time high at 7,138 levels. The stock has decisively surpassed the past couple of months' consolidation range at 7,100 levels on a closing basis, indicating continuation of the previous up move. The daily "band Bollinger" buy signal shows increased momentum. The stock is well placed above its 20, 50, 100 and 200-day SMA, and these averages are also inching up along with rising averages, which reconfirms bullish sentiments.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is 7,285-7,400, and its downside support zone is the 7,000-6,900 levels.

SBI Life Insurance Company Ltd CMP: 2,030

SBI Life share price has experienced a "multiple resistance" breakout at 2016 levels on a closing basis, along with huge volumes. The stock is in a strong uptrend across all time frames as it is trading in higher tops and bottoms. It has also registered an all-time high at 2032 levels, which remains a positive sign. The weekly "band Bollinger" buy signal shows increased momentum. The stock is well placed above its 20, 50, 100 and 200-day SMA, and these averages are also inching up along with rising averages, which reconfirms bullish sentiments.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is 2,075-2,100, and its downside support zone is the 2,000-1,990 levels.

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.