Shares to buy or sell: Sachin Gupta of 5paisa recommends Swan Energy, Tata Motors November Futures today

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, began trading positively on Tuesday, marking a turnaround from the recent decline as both indices recorded gains in the initial session.

The Nifty 50 index commenced at 23,529.55 points, rising by 75.75 points or 0.32%, while the Sensex started at 77,548 points, increasing by 208.99 points or 0.27%.

Analysts have pointed out that the markets are currently in an oversold position. Although a rapid rebound to elevated levels of the Nifty 50 is unlikely in the near future, the markets could stabilise around the present levels.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that a key insight from the current market behaviour is that a swift and significant recovery is not anticipated. The forces that propelled the market to its all-time high of 26216 in September have dissipated. While there may be some recoveries, they are unlikely to hold due to the selling pressures from foreign institutional investors and worries about weak earnings growth projected for FY25. At best, the market might stabilise around current levels, exhibiting sideways fluctuations.

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

The Nifty 50 index extended its sell-off for the seventh consecutive session, weighed down by a sharp decline in the IT sector. The Nifty IT index tumbled more than 2% after Federal Reserve Chair Jerome Powell remarked that there was “no hurry” for rate cuts, dampening sentiment in tech stocks. Despite the weakness in IT, sectors like METAL, FMCG, and AUTO provided some support, limiting the overall decline. The Nifty 50 closed at 23,453.80, registering a loss of 78.90 points.

This consistent selling pressure has pushed the Nifty 50 near its five-month low, reflecting a bearish tone in the market. On the daily chart, the index has been trading below 200-days SMA for the past two sessions. The RSI is in oversold territory with a negative crossover, suggesting the possibility of some short-covering. However, there are no clear signs of a reversal in the chart patterns. Traders are advised to avoid carrying heavy positions and to maintain proper risk-reward strategies.

On the downside, the support levels are seen around 23,200 and 23,000, while on the upside, 23,800 may act as a strong resistance zone.

Shares to buy or sell today on Tuesday- Sachin Gupta

On shares to buy or sell on Tuesday, Sachin Gupta recommends Swan Energy Ltd, and Tata Motors November Futures.

Swan Energy witnessed a significant upside movement during Monday’s session, accompanied by higher volume activity. The stock has formed a Bullish Engulfing candlestick pattern on the daily timeframe, indicating strong bullish momentum in the near term.

Additionally, the price has settled above the 21-day moving average (DMA) with rising volumes, reflecting increased buying interest among traders.

Considering these factors, we anticipate a buying opportunity in Swan Energy around ₹547-548, with a stop-loss at ₹519 and upside targets of ₹575 and ₹594.

The stock has experienced a sharp sell-off over the past two months, declining more than 28% from its September high of 1,103. On the weekly chart, the stock has been consistently declining without any significant buying momentum. Furthermore, the price has breached the 50% retracement level and is sustaining below it, reinforcing the bearish trend.

However, the daily RSI is in the oversold territory and appears overstretched, indicating the possibility of a pullback move.

Traders are advised to adopt a sell-on-rise strategy around ₹790-795, targeting potential downside levels of ₹770 and ₹755, with a stop-loss placed above ₹810.

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.