Vinay Rajani of HDFC Sec suggests L&T Finance, Welspun Enterprises shares to buy in near-term

Stock market today: Indian equity benchmarks, Nifty 50 and Sensex, slipped into the red during Monday's mid-session trade after opening on a muted note following the long weekend, as renewed geopolitical tensions dampened investor sentiment. Domestic markets remained under pressure amid concerns over fresh military exchanges between the US and Iran, with the BSE Sensex falling more than 400 points and the Nifty 50 declining around 115 points from their previous closing levels.

Investors will now turn their attention to key domestic macroeconomic indicators, including Industrial Production (IIP) data, the government's fiscal deficit figures, the final readings of the HSBC Manufacturing, Services and Composite PMIs, and the latest foreign exchange reserves data, for cues on the strength of the Indian economy.

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

Nifty 50 Outlook

Last week Nifty 50 failed to hold above the key resistance at 24,200 and reversed on the final session, keeping the index in a six-session consolidation between 23,800–24,200. The index is hovering around the 100DEMA (24,138) without a decisive breakout, while the 20DEMA (23,830) and 50DEMA (23,850) continue to act as supports. Midcaps and smallcaps, which led earlier, are losing bullish momentum—breadth has softened—so any upside will need volume and broader participation for conviction. A sustainable close above 24,200 would expose the 200DEMA near 24,450 as the next target, whereas a decisive daily close below 23,800 would increase the risk of a deeper pullback toward 23,500–23,300.

Technically, banks, NBFCs and healthcare look relatively stronger and can outperform in the near term; use strength in these sectors to add selectively. Traders should keep long positions with a closing stop at 23,800 and prefer adding only after a confirmed breakout (higher volume, improving breadth, and a reclaim of the 100DEMA). After recent outperformance, a period of healthy consolidation or running correction is normal—treat pullbacks to the 20/50DEMA region as selective entry opportunities while maintaining strict risk management.

2 stocks to buy in the near-term

Buy L&T Finance Ltd 302 | Stop-loss ₹295.8 | Target ₹332

L&T Finance share price has broken out from the downward-sloping trend line on the daily chart. The price rise is accompanied by a rise in volume. Stock is placed above all key moving averages. Daily RSI has been sustaining above 50. Daily MACD has reached above the equilibrium and signal line.

Buy Welspun Enterprises 573 | Stop-loss ₹514| Target ₹640

Descending triangle breakout on the weekly chart. Welspun Enterprises share price rise is accompanied by rise in volumes. Stock is above all key moving averages. Weekly RSI has been sustaining above 50. The weekly MACD has moved above the equilibrium and signal lines.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.