Stocks to buy: Sagar Doshi suggests Bharat Forge, HUDCO, LIC shares to buy today

Stock market today: The key domestic indices, Nifty 50 and Sensex, opened relatively unchanged on Wednesday amid a lack of global enthusiasm, as investors look for new domestic catalysts following recent increases.

As of 9:15 IST, the Nifty 50 rose by 0.03% to reach 25,918.10, whereas the BSE Sensex dipped 0.03% to 84,643.78. The 50-stock index experienced a 0.4% decline on Tuesday, ending a six-day upward trend during which it increased by approximately 2%. The index is currently 1.4% shy of its all-time high recorded in September 2024.

Global sentiment was muted, with U.S. markets declining overnight due to concerns about stock valuations, while Asian exchanges were quiet following a significant pullback in the previous session.

Analysts suggest that while some remain optimistic about AI investments, there are worries about a potential bubble forming in AI stocks. The gradual decrease in AI stock prices, without a significant crash, is beneficial for India. Foreign portfolio investors (FPIs) may begin to purchase in India if the current trend of AI trading continues to decline for a while longer. India’s recent outperformance compared to other AI-focused markets like South Korea and Taiwan during the past few days reflects this pattern.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50

After a 700 recovery, Nifty 50 showed its first sign of exertion having closed below its previous day’s low. We expect consolidation between 25,650 – 26,050 on the index for the rest of this week given the non event nature of this week added to end of earnings cycle this quarter.

Bank Nifty

Bank Nifty continues to show strength against the Nifty 50. Any dips near the 58,600 mark are likely to get bought into for target of 59,300 / 59,800.

Bharat Forge Ltd (BUY): LCP: ₹1,396; SL: ₹1,360; TGT: ₹1,525

Continuing to its flag pattern breakout, Bharat Forge has now broken out from a consolidation range which was developed from the start of this calendar year on weekly charts. Stock is also trading at 11 month highs on charts and further traction is expected above ₹1,412 where the scrip makes a fresh 52 week high.

Housing & Urban Development Corporation Ltd (HUDCO) (BUY): LCP: ₹244; SL: ₹236; TGT: ₹262

Fresh breakout from a symmetrical triangle is now observed on charts of HUDCO putting an end to its sideways consolidation which was visible for the past 2 quarters now. Immediate targets are seen crossing 260 odd levels.

Life Insurance Corporation of India (LIC) (BUY): LCP: ₹915; SL: ₹888 TGT: ₹980

A fresh bullish flat breakout added to a sustained 200 DMA support over the past 6 months allows further traction on charts of LIC for the short term aiming to hit 980 / 1,015 in the near term.

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.