Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy in the short term – December 2024

Stock market today: On Friday, the domestic benchmark indices, Nifty 50 and Sensex, rebounded after experiencing a sharp decline in the previous session. This upswing was primarily fueled by strong performances from Reliance Industries (RIL) and the pharmaceutical sector. Market participants were also looking forward to the economic growth data scheduled for release later in the day, which added to the day’s trading momentum.

The Nifty 50 witnessed a rise of 0.85%, reaching 24,116.85 points by 12:19 IST, while the Sensex increased by 0.83% to 79,696.10. This rebound follows a decline of about 1.5% for both indices in the previous session, driven by concerns regarding US interest rates and traders adjusting their positions ahead of monthly derivatives expiry.

Despite the recent market correction, Ashish Ranawade, head of products at Emkay Wealth Management in a Reuters report, highlighted that the current landscape presents opportunities for stock selection, emphasizing that there are pockets of attractive valuations available.

Mid-market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50 opened on a positive note after Wall Street was closed on Thursday for Thanksgiving. The US Markets are wrapping up early on Friday at 1 PM ET.

The good news for traders and investors is that starting November 29, 2024, NSE will introduce futures and options contracts on 45 new stocks.

Nifty 50 is likely to stay cautious amidst negative catalysts like:

1) Trump tariff threats.
2) Stubborn US inflation pressures.
3) The US PCE index, the Fed’s preferred inflation gauge, clouded the picture for rate policy in the year ahead.
4) Solid US economic momentum.
5) Improving US consumer prospects.
6) Nifty 50’s technical picture still highlights a lack of buyer interest.

Technical Views

Nifty 50

According to Prashanth Tapse, the technical landscape suggests Nifty 50’s major support at 23,639/23,263 mark. Nifty 50’s hurdle resistance seen at 24,355/24,537 mark and then at 25,157 mark. Nifty 50’s 200 DMA at 23,639 mark. A close above 24,355 would give the market a major strength to come back in the new zone. Nifty (24,044): Best buy zone between 23,600-23,750 zone. Stop at 23,221. Targets 24,355/24,551. Aggressive targets at 24,900-25,100 zone.

Bank Nifty

In yesterday’s trade, Bank Nifty was seen trading with negative bias amidst massive profit booking and the negative takeaway was that the benchmark ended way below the dotted lines. Interestingly, in Thursday’s trade, Nifty PSU Bank index ended 0.93% higher while Nifty Private Bank index ended 1.11% lower.

Intraday support for Bank Nifty now seen at 50,945/50,551 mark and then at 49,787 mark on closing basis. In today’s trade and in the near term, Bank Nifty is likely to face resistance at 52,761/53,100 mark. Bank Nifty’s 200-DMA is placed at 49,974 mark.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term –

“Our chart of the day is bullish on Syngene International Ltd, Sun Pharmaceutical Industries Ltd, and Cipla Ltd with an intraweek perspective,” said Tapse.

BUY Syngene International (CMP: ₹916): Buy between 895-900 zones. Stop Loss below 851. Targets 941/977. Aggressive targets at 1,050. (Interweek Strategy). Rationale: Massive breakout from a probable higher consolidation zone on the daily charts. Momentum oscillators are clearly in bullish mode. Key intraday support 875.

BUY Sun Pharmaceutical Industries (CMP: ₹1,765) up to 1,730. Stop Loss below 1,699. Targets 1,800/1,840 (Interweek Strategy). Rationale: bouncing breakout after consolidation zone on the daily charts with bullish setup. Key intraday support 1,720.

BUY Cipla (CMP: ₹1,522), up to 1,490, Stop Loss below 1,450, Target 1,600/1,650 (Interweek Strategy). Rationale: Stock coming out of recovery and about to break out on the daily charts with bullish setup. Key intraday support 1,490.

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.