Shares to buy or sell: Rajesh Palviya of Axis Securities suggests these three stocks to buy, hold, and accumulate today

Stock Market News: On Friday, the domestic benchmark indices, Sensex and Nifty 50, started the day on a positive note, buoyed by a rally in other Asian markets. The Nifty 50 index opened at 23,411.80 points, reflecting a gain of 61.90 points or 0.27%. Meanwhile, the Sensex commenced trading at 77,349.74 points, up by 193.95 points or 0.25%.

Experts suggest that the markets remain cautious, with the results of the Maharashtra elections over the weekend expected to influence stock movements. Additionally, there was notable selling pressure from foreign institutional investors (FIIs) yesterday, particularly affecting stocks from the Adani group.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has provided insights into current market trends that are worth noting. He observes that the ongoing escalation of the Russia-Ukraine war, highlighted by Russia firing Intercontinental Ballistic Missiles, could have repercussions on global markets. Additionally, foreign institutional investors (FIIs) have been engaged in relentless selling, marking a record of 37 consecutive days of outflows. Despite this, the market has only seen a correction of about 11% from its peak in September, indicating that we are experiencing a correction rather than a crash.

Interestingly, the broader US market remains bullish, boasting a year-to-date return of 25.43%. These elements combined suggest that the overall market undertone is still positive, presenting opportunities for investors amidst the current volatility.

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities

Over the past couple of months, the benchmark index has entered a corrective phase, forming a series of lower tops and bottoms on the daily chart, which indicates a short-term negative trend. The index is trading below its 20, 50, 100, and 200-day simple moving averages (SMA), signifying a downtrend in both the short and medium term. Additionally, the daily and weekly Relative Strength Index (RSI) is in negative terrain, pointing to a loss of strength. Currently, there is overhead resistance around the 23,600-23,800 levels, while the crucial support zone is located around the 23,000-22,800 levels.

The stock is experiencing a strong uptrend across all time frames, forming a series of higher tops and bottoms. Additionally, with its current closing price, the stock has decisively broken through the “multiple resistance” zone of 900-920 that has persisted over the past couple of months. This breakout is accompanied by significant trading volumes, indicating increased market participation. The stock is also positioned well above its 20, 50, 100, and 200-day simple moving averages (SMAs), all of which are increasing in tandem with the rising price, further confirming the bullish trend. Moreover, the daily, weekly, and monthly RSI indicators are all in positive terrain, which supports the notion of increasing strength.

Investors should buy, hold and accumulate this stock with an expected upside of 985- 1085 with downside support zone of 864-835 levels.

On the daily and weekly timeframes, the stock is trending higher, forming a series of higher tops and bottoms. With weekly price action, the stock has confirmed a “rounding bottom” formation, indicating bullish sentiments. Recently, the stock has recaptured the 20, 50, and 100-day SMAs and rebounded sharply, indicating a positive bias. The past couple of months of huge volume signifies increased participation. The daily and weekly Bollinger Bands buy signal signifies increased participation as well. The daily, weekly, and monthly strength indicator RSI is in positive terrain, which justifies the rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of 82-95 with downside support zone of 65-61 levels.

On the daily chart, the stock has confirmed a “symmetrical triangle” breakout at 725 levels, along with huge volumes. The stock is well placed above its 20, 50, 100, and 200-day SMAs, and these averages are also inching up along with the price rise, which reaffirms the bullish trend. The daily and weekly “Bollinger Band” buy signal signifies increased participation. The daily, weekly, and monthly strength indicator RSI is in positive terrain, which justifies rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of 870-913 with downside support zone of 750-730 levels.

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.