Top Stock Recommendations: Osho Krishan of Angel One suggests buying BSE, and Welspun Corp tomorrow

Stock Market News: The domestic benchmark indices, the Sensex and Nifty 50, ended Wednesday's session mixed, with advances in information technology (IT) stocksbeing countered by widespread profit booking following softUS producer pricing data that suggested inflation was slowing.

The Sensex gained 0.19% to close at 79,105.88, while the Nifty 50 index finished 0.02% ahead at 24,143.75 points.

The IT index rose by 1.58% after data revealed that US producer prices increased less than anticipated in July, suggesting a slowing economy and heightening expectations of a Federal Reserve rate decrease in September. Because a sizable portion of their income comes from the US, IT businesses are sensitive to the state of the US economy.

According to a Reuters news report, US consumer prices increased marginally in July, as anticipated, supporting market wagers that the Federal Reserve may soon begin reducing interest rates. As a result, global equities remained stable and government bond yields slightly declined on Wednesday.

As per data, the consumer price index increased by 0.2% in July following a 0.1% decline in June. However, inflation in housing, which includes rent, picked up speed in July as opposed to June.

On tomorrow's session, market will react to these variables in general. For Independence Day 2024, the Indian stock market is closed today. Therefore, on August 15, there won't be any trading on the Indian stock market.

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

The weekly expiry session for key indices was uneventful as the benchmark index fluctuated within a narrow 100-point range, ultimately ending slightly below 24,150. Prior to the mid-week holiday, traders seemed to be taking a cautious approach by maintaining smaller positions, resulting in limited fluctuations in the daily chart price action. Following the significant decline seen last Monday, prices have been moving back and forth within a specific range, displaying a lack of clear momentum in either the upward or downward direction.

Key moving averages are pivotal, with the 50-day EMA providing strong support for bullish momentum and the 20-day EMA presenting formidable resistance. The trading range spans from 23,900 to 24,500, with 24,000 acting as a crucial lower limit and 24,350 as a significant upper barrier. Anticipation mounts for a significant market shift upon breaching this range.

The current market conditions are challenging, with a bearish tone affecting the broader market. However, there are opportunities for selective stock performances. Traders are encouraged to exercise caution and carefully consider their stock choices. It's important to stay informed about global developments and focus on specific levels, ultimately trading in the direction of the breakout rather than getting swayed by short-term trends.

Top Stock Recommendations For Friday by Osho Krishan

On stocks to buy on Friday, Osho Krishan recommended two stocks - BSE Ltd, and Welspun Corp Ltd.

BSE Ltd

BSE Ltd witnessed a decent fall in the recent period from the lifetime highs of 3246 to test the 200 SMA on the daily time frame chart. After a decent consolidation in the last couple of weeks, the stock shows signs of regaining strength and appears poised to witness a reversal pattern. The recent runaway gap eloped the counter above the cluster of its significant EMAs on the daily time frame, adding a bullish quotient and suggesting a potential upside journey in a comparable period.

“Hence, we recommend to BUY BSE Ltd around ₹2,540-2,520, keeping a stop loss of ₹2,380 for a potential target of ₹2,800-2,870,” said Osho.

Welspun Corp Ltd

Welspun Corp has recently demonstrated a strong breakout after consolidation and is currently trading comfortably above all its significant EMAs on the daily chart. Following the breakout, there was a period of profit booking, which can be viewed as a technical re-testing of the neckline, offering an opportunity to re-enter. The overall trend appears to be upward, and minor upcoming fluctuations are likely to provide a favourable environment for buyers.

"Hence, we recommend to BUY Welspun Corp on dips of ₹650-640, keeping a stop loss of ₹595 for a potential target of ₹750," advised Krishan.

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 decisions.