Vinay Rajani of HDFC Sec suggests PG Electroplast, Puravankara shares to buy in near-term

Stock market today: Indian equity markets witnessed broad-based selling on Monday, 13 July, as weak global cues and heightened geopolitical tensions weighed on investor sentiment. Benchmark indices Sensex and Nifty 50 fell nearly 1% each during intraday trade, with losses extending across the broader market.

The BSE Sensex plunged more than 700 points to an intraday low of 76,857, while the NSE Nifty 50 slipped over 200 points to touch 24,000.

Selling pressure was also evident in the broader market, with the Nifty Midcap 100 and Nifty Smallcap 100 indices declining by up to 1%.

The sharp market decline eroded investor wealth, with the total market capitalisation of BSE-listed companies falling to around ₹480 lakh crore from ₹481.75 lakh crore in the previous session, wiping out nearly ₹2 lakh crore in market value during the session.

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

Nifty 50 Outlook

The Nifty 50 continues to consolidate around its key daily moving averages, reflecting the absence of a clear near-term directional catalyst. On the downside, immediate support is placed near the 50 DEMA at 23,934, followed by the recent swing low at 23,800. Existing long positions should be maintained with a strict closing stop-loss at 23,800. On the upside, a decisive close above the swing high of 24,601 is essential to confirm a higher high–higher low structure on the weekly chart. Such a breakout would likely open the path toward the 200 DSMA at 24,845.

In contrast, Bank Nifty continues to display relative strength, trading comfortably above its key exponential moving averages. A sustained move above 58,581 would confirm a breakout from its recent consolidation phase and could drive the index toward 59,274. Immediate support is placed at 56,550.

The broader market remains the key area of focus, continuing to outperform the benchmark indices. The Nifty 500 has resumed its primary uptrend after a sharp rebound from its descending trendline breakout support. Market breadth remains robust, with approximately 64.60% of NSE 500 constituents trading above their 50 DMA and 56% above their 200 DMA.

With the Midcap 100 index scaling fresh all-time highs and small-cap and micro-cap indices breaking out of multi-month consolidation zones, the current setup suggests continued rotation and capital inflow into high-beta segments of the market.

2 stocks to buy in the near-term

Buy PG Electroplast at ₹596 | Stop-loss ₹548 | Targets ₹650,690

PG Electroplast share price has surpassed the previous swing high resistance. Price rise is accompanied by rise in volumes. Stock is placed above all key moving averages. Weekly RSI has been sustaining above 50. The weekly MACD has moved above the equilibrium and signal lines. The stock price has broken out from a bullish cup and handle pattern on the daily chart.

Buy Puravankara at ₹232| Stop-loss ₹220 | Target ₹250

Puravankara share price has broken out from the consolidation pattern. Stock has also surpassed the crucial 200-day moving average resistance. The real estate sector has been outperforming. Price rise is accompanied by a rise in volumes. Indicators and oscillators have been showing strength on short-term charts.

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.