Technical Picks: Vinay Rajani of HDFC Securities suggests these two stocks to buy or sell in the near-term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, rose on Thursday, primarily driven by the financial sector, with experts attributing the uptrend to attractive valuations in the industry amidst a lack of significant catalysts and light trading as the year-end nears. Nevertheless, in the latter part of the day, the benchmark indices surrendered their initial gains and traded flat.

The Nifty 50 is currently trading within a tight range of 23,900 to 23,500 this week, indicating uncertainty among market players, according to Mandar Bhojane, a research analyst at Choice Broking, as reported by Reuters. Analysts also noted that a clear direction would likely become apparent only when the corporate earnings season kicks off in the second week of January.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that the market is likely to look for both fiscal and monetary support in the future. These expectations could lead to a consolidation phase in the near term for the market. The market's response following the Budget and monetary policy will hinge on the policy measures introduced.

Market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities

Nifty 50

For last three consecutive trading sessions, subdued activity has been seen in the Indian market. On Tuesday, there was muted activity in the nifty future as OI increased by just 0.22% with Nifty 50 falling by 0.11%. In technical terms there is an indecision in the trend for last three trading sessions.

However, the primary trend has been bearish as nifty is holding its level below 10,20,50 and 100 DEMA. Due to absence of FIIs, volumes have dried up and momentum and direction both missing in the Indian benchmark indices. However, stock specific bullish moves in mid and small cap segments cannot be ruled out due to possible pop up in NAVs at Calendar Year end. Nifty 50 is broadly in the range of 23,500-24,000. However, immediate resistance is seen at 23,870, above it could move up to 24,000. On the lower side short term support is seen at 23,647.

BankNifty

BankNifty has been forming higher lows for last three trading sessions. In today’s early morning session, the index hit an intraday high at 51,740 and turned southward. There is an unfilled downward gap in the range of 51,789-52,010 and the same is expected to act as a strong resistance in the index.

On the lower side, 51,000 is the level, where Banknifty could find support. Far support for the index is seen near 50500, derived from 200 DEMA.

Technical Picks: Stocks to buy or sell in the near-term

Buy Hindustan Petroleum Corporation Ltd (HPCL) (411): | Targets Rs. 440 | Stop-loss ₹389

Stock is trading above key moving averages with higher tops and higher bottom formation on the daily chart. Relative strength of HPCL is high as compared to other OMCs. Indicators and oscillators have been showing strength in the current uptrend of the stock.

Buy Nippon Life India Asset Management Ltd (Nam India) (755): | Targets Rs. 835|Stop-loss ₹700

Stock price has seen running correction from the all-time high of 816. Primary trend of the stock is bullish, as stock is placed above medium and long term moving averages, indicating a bullish trend. RSI and MACD have been showing strength on the positional charts.

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.