Top Stock Recommendations: Osho Krishan of Angel One suggests buying Nestlé India, and Nykaa today

Stock Market News: Ahead of the Reserve Bank of India's policy meeting, where it is anticipated to hold steady on interest rates, the domesticbenchmarkindices, the Nifty 50 and Sensex, started lower on Thursday.

As of 9:51 IST, the Sensex dropped 0.29% to 79,237.22, while the Nifty 50 index dropped 0.23% to 24,242.25.

Amid inflationary pressures, the RBI is anticipated to maintain key policy rates unchanged for a ninth straight meeting; nonetheless, its hawkish 'removal of accommodation' policy stance and remarks will be scrutinised.

As per Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, there is a discernible pattern in the institutional activity observed in the market recently. Due to their risk aversion, FIIs are selling steadily and playing it safe. In the cash market, FIIs had sold for ₹20,228 crores during the past four days. Given the high valuations of India, the US recession fears, and further concerns about the unwinding of the yen carry trade, this is a reasonable course of action. Due to equal FII selling and DII purchasing, which totalled ₹19,278 crores over the previous four days, the Indian market has once again become robust.

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

The Bear's three-day winning streak came to a halt, bringing some relief to market participants as broad-based buying restored optimism after recent portfolio losses. However, key indices showed limited traction after the opening, as traders appeared to be maintaining cautious positions in anticipation of the upcoming RBI policy announcement.

On the hourly chart, the Nifty is currently hovering within a specific range, indicated by the values of 23,900 - 24,400. This range corresponds to important moving averages, with the lower end intersecting with the 50 DEMA and the upper end intersecting with the 20 DEMA, along with a bearish gap. On the day of the policy outcome, it will be essential to carefully monitor how prices react around these specified levels. If trading consistently exceeds the upper threshold, it could lead to additional positive momentum, potentially resulting in the bearish gap around 24,700 being filled.

In the event of a failure to break higher, it is important to consider the possibility of prices retracting to the lower band of 23,900. A break below this level could signal the start of a new downward trend. Traders are encouraged to vigilantly track these levels and adapt their trading strategies accordingly. Additionally, focusing on the specific movements of individual stocks is crucial, necessitating a discerning approach that keeps traders cautious and thoughtful.

Top Stock Recommendations For Thursday by Osho Krishan

On stocks to buy today, Osho Krishan recommended two stocks - Nestlé India Ltd, and FSN E-Commerce Ventures Ltd (Nykaa).

Nestlé India Ltd

Nestlé India Ltd witnessed a decent fall in the recent period from the subzone of 2650 to test the 200 SMA on the daily time frame chart. After a decent consolidation in the last couple of sessions, the stock shows signs of regaining strength and appears poised to witness a reversal pattern. On the oscillator front, a positive crossover near the oversold terrain in the 14-period RSI adds a bullish quotient, suggesting a potential upside journey in a comparable period.

Hence, we recommend to BUY Nestlé India Ltd around ₹2,500, keeping a stop loss of ₹2,400 for a potential Target of ₹2,650-2,700.

FSN E-Commerce Ventures Ltd (Nykaa)

Nykaa has shown steady growth in the past couple of trading sessions and is comfortably placed above all its significant EMAs on the daily chart. The stock recently witnessed an intense bout of traction and maintained its positive stature during the turbulent period, suggesting inherent strength. It appears poised to continue its northward journey in the comparable period. The recent traction has been backed by complementary technical indicators.

Hence, we recommend to BUY Nykaa around ₹190, keeping a stop loss of ₹180 for a potential Target of ₹205-210.

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.