Stocks to buy: Rajesh Palviya of Axis Sec suggests Sammaan Capital, NTPC, Tata Steel shares today

Stock market today: Domestic stock markets commenced trading on Friday with significant selling pressure due to increased volatility in global markets, primarily caused by dramatic fluctuations in gold and silver prices.

Investor sentiment remained weak as markets responded to the sharp drop and abrupt recovery in precious metals, alongside a general uncertainty in global asset classes.

The Nifty 50 index started at 25,247.55, down 171.35 points or 0.67%, while the Sensex opened the session at 81,950.05, falling by 616.32 points or 0.75%.

In stock-specific moves,Vedanta shares dropped nearly 5% at the market open, and Hindustan Zinc also experienced a 5% decline, indicating the impact of significant fluctuations in global commodities.

On the institutional side, foreign institutional investors net sold stocks totaling ₹393 crore on Thursday, whereas domestic institutional investors offered support with net purchases amounting to ₹2,638 crore.

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

Nifty 50

Since the past six consecutive sessions, the benchmark index continues to consolidate within 25,400-24,900 levels, indicating a short-term sideways trend, and hence, either side range breakout may indicate further direction. This consolidation is well placed above the 200-day SMA support zone of 25,184 levels, which remains a crucial support zone. The daily RSI strength indicator remains in positive territory, indicating a rising strength.

Sammaan Capital Ltd Cmp: ₹148

For the past couple of months, Sammaan Capital has been hovering around the multiple support zone of 135 levels. This consolidation is strongly supported by the 200-day SMA (139), which remains a crucial support level. Past 3-4 sessions, rising volumes indicate increased participation. The positive divergence on the daily RSI indicates rising strength near the support zone. The stock is well placed above 20, 50,200 SMA, which signals bullish sentiments

Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹155-165, and its downside support zone is the ₹141-135 levels.

NTPC Cmp: ₹358

With the current close, NTPC has decisively surpassed the past 8-10 months' multiple resistance" zone of 355 levels on a closing basis, along with huge volumes, which reconfirm bullish sentiments. 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. The daily and weekly "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.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹370-390, and its downside support zone is the ₹355-345 levels.

Tata Steel Ltd Cmp: ₹202

Tata Steel is in a strong uptrend across all the frames, forming a series of higher tops and bottoms. 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. On the weekly chart, the stock has confirmed a "rounding bottom" formation at 186 levels, which signals positive bias. The daily, weekly and monthly strength indicator, Relative Strength Index (RSI), is in favourable territory, indicating rising strength across all time frames.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹210-223, and its downside support zone is the ₹194-186 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.