Shares to buy: Prashanth Tapse of Mehta Equities suggests buying Apollo Hospitals, Power Grid, SBI in the short term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, participated in the global market decline on Friday amid concerns that the US reciprocal tariffs could trigger a worldwide recession, after having mostly remained stable during the previous session when the tariffs on India were lower compared to other countries.

As of 13:10 IST, the Nifty 50 decreased by 1.20% to 22,970.15 points, whereas the Sensex dropped by 0.96% to 75,566.50. India faced a 27% retaliatory tariff, which is less than China's 34%, Vietnam's 46%, and Bangladesh's 37%. The broader mid-cap and small-cap indices also fell by 3% and 3.5%, respectively, following minimal disruptions in the prior session.

Pharmaceutical stocks plummeted over 6% after reports surfaced that Trump threatened tariffs on pharmaceutical products at unprecedented levels. This sector completely negated its earlier 2.3% gains from Thursday when it had been exempted from tariffs.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, indicated that a decline in global economic growth will affect India’s growth as well, although we may perform better than other major economies. Investors may choose to wait until the situation stabilizes. In the short term, it is advisable to concentrate on themes driven by domestic consumption and the pharmaceutical sector within externally-affected segments.

A potential upside for the Indian market is the possibility of Foreign Institutional Investors (FIIs) becoming net buyers due to the weakening of the dollar. Fairly priced domestic consumption segments, such as financials, and growth sectors that are less affected by tariffs, including telecom, hospitality, healthcare, cement, and digital platform stocks, are expected to remain robust.

Market Views - Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

Nifty 50 has broken down below its major support mark of 23,150 and facing constant selling pressure towards 22,900-23,000 which is a crucial support zone. On its daily time frame charts, Nifty 50 has touched anchor VWAP support mark of 22,968 which seems to be a crucial level. We feel that if today we manage to close above 22,900 - we can see a relief rally towards 23,500 and 23,800 eventually once again.

Bank Nifty

Bank Nifty is however holding up well with an immediate resistance 51,900 and 52,000 odd level and immediate support at 51,400 and 50,900. Overall, technically we feel that the trend is looking bullish and we should see a rally towards 52,000 and above eventually over time. With most of indicators showing bullishness and other factors being in place, we feel that PSU and Private Banking stocks should see a good rally on upside here.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term - Apollo Hospitals Enterprise Ltd, Power Grid Corporation of India Ltd, and State Bank of India (SBI).

Apollo Hospitals Enterprise Ltd

Buy | CMP : ₹6,632 | SL : ₹6,500 | TARGET : ₹6,900

Apollo Hospitals is holding up well amidst market tides and showing strong signs of momentum and strength. With the entire hospital space holding up well on higher levels and stock trading above its crucial moving averages, we feel that the stock can surge higher towards potential targets of 6,900 and above. Technically, the stock witnessed a breakout above 6,700 few days back and seen to be consolidating now. We feel that one should initiate longs here with SL 6500 for potential upside targets of 6,900 and more.

Power Grid Corporation of India Ltd

Buy | CMP : ₹297 | SL : ₹290 | TARGET : ₹310

Power Grid has been showing resilience and strength, trading above key moving averages with strong volume support. The stock has formed a base around 290-295 levels and is now attempting to move higher. With the overall trend remaining positive, we expect an upside towards 310 and beyond. Long positions can be initiated at the current market price with a stop loss of 290 for higher targets.

State Bank of India (SBI)

Buy | CMP : ₹775 | SL : ₹760 | TARGET : ₹800 AND ₹820

SBI continues to exhibit strong bullish momentum, supported by rising volumes and strength in the banking sector. The stock is trading near its recent highs and remains well-positioned for an upward move. Given its breakout structure, we recommend initiating longs at CMP with a stop loss of 760 for potential targets of 800 and 820.

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.