Wednesday, February 12, 2025

Shares to buy or sell: Ruchit Jain of 5paisa recommends Crompton Greaves Futures, Bombay Burmah Trading Corp today

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Stock Market News: With weak earnings and persistent foreign selling weighing on markets, the domestic benchmark indices, the Sensex and Nifty 50, opened Tuesday little changed. Overnight, global shares fell due to apprehension over the worsening Middle East crisis.

In early trade, the Sensex rose 239.33 points to 81,390.60 after dropping in the previous trade. With a 72.95-point increase, the Nifty 50 reached 24,854.05.

According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, certain triggers will lead market values to correct when they are at high levels, bringing them down to levels that are acceptable and consistent with long-term norms. According to NSDL, the prolonged selling by FIIs, which totalled 88244 crores by October 21st, served as the catalyst for the correction this time.

Market Review and Outlook – Ruchit Jain, Lead Research Analyst at 5paisa

Nifty 50 started the week on a positive note but it witnessed selling pressure and traded with a negative bias throughout the day. The market breadth was weak while the index ended the day around 24,750 with a loss of about half a percent.

Our markets traded with a negative bias post open on Monday where although the index did not see any sharp move, the broader markets saw sharp correction leading to underperformance in the midcaps and the small cap space. The market breadth was very weak as the midcap and the small cap indices corrected by more than one and a half percent.

On the benchmark index, 24,600-24,500 is the crucial support zone for the near term. The RSI is still negative on the daily and the weekly charts on Nifty 50 and thus, there are no reversal signs as of now from this support. On the higher side, 25,000-25,100 is seen as the immediate resistance zone, followed by 25,200-25,250. The index is expected to consolidate within this broad range and only a breakout beyond this zone would lead to the next directional move.

Traders are advised to keep a wait and watch approach and wait for signs of range breakout or reversal from support.

Shares to buy or sell today – Ruchit Jain

On shares to buy or sell on Tuesday, Ruchit Jain recommends Crompton Greaves Futures, and Bombay Burmah Trading Corporation Ltd.

Crompton Greaves Futures (Sell)

The stock has given a breakdown from its trend line support which was the neckline of a ‘Head and Shoulders’ pattern. The support broken is a bearish sign for the short term and the RSI oscillator also hints at a negative momentum.

Hence, traders are advised to sell Crompton October Futures in the range of 406-410 for potential target of 491 and 480. Traders are advised to keep a strict stop loss above 421.

Bombay Burmah Trading Corporation Ltd (BBTC)

The stock has been forming a ‘Higher Top Higher Bottom’ and is thus in an uptrend. The volumes are good in the price upmove and the 50 DEMA is acting as a support. The RSI oscillator has given a positive crossover and hence, we expect the uptrend to continue.

Short term traders can buy the stock in the range of 2,800-2,760 for potential near term targets of 2,950 and 3,050. The stop loss on long positions should be placed below 2,650.

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.





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