Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy in the short-medium term

Stock market today: The domestic benchmark indices, Sensex and Nifty 50, experienced significant volatility following the Reserve Bank of India’s monetary policy announcement. After the announcement, the markets oscillated between highs and lows.

On Friday, the Reserve Bank of India (RBI) chose to maintain the policy rate unchanged for the eleventh consecutive time but made a notable revision to its GDP growth forecast, lowering it to 6.6% for the current fiscal year, down from the previous estimate of 7.2%.

The Sensex dropped by 259.67 points to reach 81,506.19 shortly after the announcement. Similarly, the Nifty 50 decreased by 87.9 points to 24,620.50.

Asian markets were mixed on Friday, concluding a volatile week. South Korean stocks remained under pressure as the president faces impeachment, leaving his job hanging by a thread, as per news reports.

Investors are preparing for the upcoming release of US jobs data while also monitoring the developments surrounding Donald Trump’s cabinet formation. Early indications suggest that Trump may adopt a hawkish stance on trade, raising concerns about a potential conflict with China.

Mid-market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

The Nifty 50 witnessed a significant breakout above the 24,600 mark on a closing basis, signalling strong bullish momentum. With rising volumes and technical indicators pointing upward, the index appears well-positioned to target 25,000 and 25,200 levels in the near term. Traders are advised to maintain a strict stop loss at 24,250, while positional players can consider a wider stop loss at 24,000 to manage risk effectively.

Bank Nifty

The Bank Nifty, currently hovering around 53,600, is poised for further gains, with potential targets of 54,000 and 54,400. This aligns with the strong performance of banking stocks and robust buying momentum. Traders should adhere to a stop loss at 53,000, while positional players may set theirs at 52,700 to safeguard against downside risks.

Shares to buy for short – medium term

Prashanth Tapse recommends buying these three stocks in the short – medium term (One-month time period) – Tata Power Company Ltd, Bharat Petroleum Corporation Ltd (BPCL), and Dr. Reddy’s Laboratories Ltd.

Tata Power: Buy | CMP: 435 | SL: 415 | TARGET: 480 & 490

The stock has exhibited a decisive trendline breakout above 430 during Friday’s session, supported by rising volumes, which validate the breakout. A buy is recommended at 435, with a strict stop loss at 415 to mitigate risks. With strong momentum building, potential targets are set at 480 and 490, positioning Tata Power for a robust performance in the coming month.

BPCL: Buy | CMP: 302 | SL: 290 | TARGET: 350 & 360

BPCL has broken out above the key level of 299, showcasing a bullish trend reinforced by rising volumes. A buy is recommended at 302, with a stop loss at 290 for risk management. With RSI (14) being near 49 and witnessing good uptick from lower levels, we expect momentum to pick up well here. The breakout momentum indicates potential targets of 350 and 360, suggesting a strong upside in the one-month horizon.

Dr. Reddy’s: Buy above 1250 | CMP: 1,240 | SL: 1,180 | TARGET: 1,350 & 1,360

The stock is at a critical juncture, with a breakout anticipated above 1250. Sustaining above this level is likely to trigger a significant upward move. With RSI (14) being near 49 and witnessing good uptick from lower levels, we anticipate momentum pick up happening here. A buy is advised above 1250, with a strict stop loss at 1180. Given the positive trend in pharmaceutical stocks, Dr. Reddy’s could achieve targets of 1350 and 1360 in the coming month.

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.