Wednesday, February 12, 2025

Shares to buy or sell: Sachin Gupta of 5paisa recommends buying Jubilant FoodWorks, Deepak Fertilisers today

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 Stock market today: The Nifty 50 and Sensex, the main domestic stock indices, began the trading session on Tuesday with slight gains ahead of the Christmas holiday. The likelihood of a year-end rally is fading due to ongoing market pressure. 

The Nifty 50 index started at 23,769.10 points, up by 15.65 points or 0.07%, while the Sensex opened at 78,707.37 points, increasing by 167.20 points or 0.21%.

According to analysts, the Indian stock markets are facing pressure mainly due to two key factors: a strong dollar and rising bond yields in the US, which are causing foreign institutional investors to sell during market upswings. A short-term rally appears improbable. As the end of the year approaches, investors are encouraged to focus on safety rather than returns in the current situation.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, indicated that the relief rally observed yesterday is unlikely to experience an upward trend in the upcoming days. Two sets of factors—external and internal—will limit a sustained upward movement. From an external perspective, the strong dollar and elevated bond yields in the US will likely lead foreign institutional investors to sell during rallies. 

From an internal viewpoint, the slowdown in both growth and earnings will present short-term challenges that will hinder bullish momentum. The high market valuations, in this challenging macroeconomic environment, do not support price-to-earnings (PE) expansion that could significantly elevate the market.

Market Review and Outlook – Sachin Gupta, Senior Research Analyst at 5paisa

The Nifty 50 index began the week on a strong note, sustaining its upward momentum throughout the trading day. Following a gap-up opening, the index remained bullish and closed at 23,753.45, marking a 0.70% gain. Sectors such as Realty, PSU Banks, FMCG, and Metal contributed significantly, each adding approximately 1% gains.

Among individual performers, JSW Steel, ITC, Hindalco, and Trent emerged as the top gainers, while Hero MotoCorp, Maruti, Nestle, and HCL Tech were the key laggards of the session.

On the hourly chart, Nifty 50 showed signs of recovery, witnessing a short-covering move from oversold levels accompanied by a positive crossover. However, on the daily chart, the index remains in a bearish setup, trading below its 100-day and 200-day Simple Moving Averages. Indicators like RSI and MACD exhibit a negative crossover, reinforcing the downward bias.

For a reversal, the index needs to close above the critical resistance levels of 23,850 and 24,000. Until this happens, traders are advised to remain cautious. On the downside, key support levels are at 23,500 and 23,300. A breach of these levels could trigger further correction toward 23,000 and 22,800.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends Jubilant FoodWorks Ltd, and Deepak Fertilisers and Petrochemicals Corporation Ltd.

Jubilant FoodWorks Ltd

On the daily chart, the stock has confirmed a breakout of the Bullish Pennant Pattern, indicating positive momentum in the short term. Furthermore, the prices are trading above all key moving averages, which act as significant support for the ongoing bullish trend. The breakout is accompanied by higher trading volumes and a positive RSI crossover, both of which signal strong bullish sentiment and favourable price action in the coming days.

Based on this technical setup, we recommend buying in Jubilant FoodWorks at 691, targeting potential levels of 722 and 743, with a strict stop-loss at 663.

Deepak Fertilisers and Petrochemicals Corporation Ltd

After a consistent decline over the past two weeks, the stock has found support around the 100-EMA and a rising trendline at the 1,110 level, closing positively, which suggests a potential recovery in the near term. Additionally, the stock has shown upward movement after finding support at the 61.8% Golden Ratio Retracement Level, signaling possible reversal moves. The momentum indicator RSI is also hovering near the oversold zone, further indicating a potential reversal.

Based on this analysis, traders can consider buying Deepak Fertilisers above 1180 for a potential target of 1,250, with a stop loss at 1,130.

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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