Technical Picks: Vinay Rajani of HDFC Securities suggests these three stocks to buy or sell in the near-term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, witnessed a significant drop on Thursday due to selling pressure in major global markets after the US Federal Reserve indicated fewer rate cuts in the coming year.

At 14:10 IST, the Nifty 50 index declined by over 0.97 percent or 235.25 points, at 23,877.15 points, while the Sensex fell by 918.53 points or 1.15 percent at 79,259.27 points.

The primary cause of the significant selling pressure in the opening session is the decrease in anticipated rate cut cycles by the US Federal Reserve, which had previously been expected to initiate additional rate cuts this year. This development resulted in declines in major global markets since the expected rate cuts were believed to support economic growth and indicate a reduction in inflation.

“When valuations are high the market needs only a trigger to correct sharply. This trigger was provided by the Fed guidance of fewer rate cuts in 2025, which went against market expectations. Even though the rate cut of 25 bp was in tune with the market’s expectation, the indication of only two cuts of 25 bp each in 2025 against market expectation of three or even four cuts spooked the market resulting in a sharp sell-off in Wall Street. Sharp cuts in the market today will provide opportunities for investors to buy,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

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

Nifty 50

Nifty 50 has seen a fall of more than 900 points from the recent swing high. Nifty 50 violated the crucial support of 24,180 and witnessed further weakness due to weak global markets. The recent fall has resulted into violation of 20, 50 and 100 days EMA supports in Nifty 50, which is bearish sign.

However, Nifty 50 still has a hope of protecting the support level of 200 DEMA, which is currently placed at 23,700 odd levels. Bullish inverted head and shoulder patter will be negated, If Nifty 50 closes below the right shoulder swing low of 23,873. On the higher side, there is strong resistance in the zone of 24,000-24,100 level in spot, which should be utilized to exit trading longs in Nifty 50.

Bank Nifty

Bank Nifty plunged more than 2,300 points in last three trading sessions. This fall has resulted in to filling of the entire gap range of 51,271-51,774, which was formed at 25 th November after Maharashtra state election outcome announcement. Recent fall has violated multiple moving average supports at once, which signs cautiousness at higher levels. We cannot rule out the bounce from current levels, but at higher levels near 52,200, it is advisable to lighten the long commitments. Break below 51,200 could drag the index further down towards 200 DEMA support near 50,450 in spot.

Technical Picks: Stocks to buy or sell in the near-term

Buy Torrent Pharma ( ₹3,410): | Targets ₹3,550 | Stop-loss ₹3,300

Stock price has broken out from the consolidation, which held for last 10 trading sessions. Stock price has broken out with rise in volumes. Pharma sector has started outperforming for last couple of sessions. Stock is placed above key moving averages, which indicates bullish trend on all time frames.

Buy Coromandel International ( ₹1,850): | Targets ₹1,950|Stop-loss ₹1,785

Stock price has been forming higher tops and higher bottoms on the weekly charts. Stock is hovering near its all time high. Stock is placed above all important moving averages, indicating a bullish trend on all time frames. RSI and MACD have turned bullish on the daily charts. The fertilizer sector has gained back its bullish momentum and that is likely to continue.

Sell Axis bank Dec Fut( ₹1,115): | Target ₹1,050 | Stop-loss ₹1,150

Stock price has violated the crucial support of ₹1,115, derived from the previous swing low. Stock has violated key moving average supports, which indicates down trend for the short term. Indicators and oscillators have turned bearish on the daily chart.

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.