Buy or sell: Osho Krishan of Angel One recommends buying Samvardhana Motherson and Hindustan Unilever stock today

Stock Market News: Domestic benchmark equity indices, the Sensex and the Nifty 50, began Thursday's session on a flat note amid mixed global cues. 

BSE Sensex opened lower by 84.31 points or 0.12% at 72,220.57 level while the Nifty 50 opened at 21,935.20 level, down 16 points or 0.07%. 

“The market has suddenly turned unpredictable amidst high volatility. Resistance has become strong at Nifty 22,200 level. The cut in Nifty 50 by more than 1% yesterday despite the foreign institutional investor (FII) selling getting neutralised by domestic institutional investors (DII) buying is significant. 

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This is due to rebalancing of the positions a day ahead of the monthly expiry. The volatility will continue today, too, being the last day of the monthly expiry. Investors may wait for the volatility to subside,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The Sensex and the Nifty 50, ended Wednesday's session lower on the backdrop of a lack of direction and led by heaving selling in PSU bank, realty, auto, oil, and gas stocks.

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The 30-share BSE Sensex ended lower by 790.34 points or 1.08% at 72,304.88 level while the Nifty 50 closed at 21,951.15 level, down 247.20 points or 1.11%. On the broader market front, the Nifty Small Cap 100 dropped 1.87% and the Nifty Midcap 100 indexes was down by 1.94%.

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Analysts believed that investors booked profits after significant gains that triggered some short-term selling pressure. Additionally, as the F&O expiry day of today, drew near, traders' rollover of holdings to the next expiry day caused volatility.

Further, analysts noted that 90 stocks were trading lower during Wednesday's session as the Nifty Midcap index fell more than 1,000 points.

Also Read: Nifty 50, Sensex crash today over 1% each; 5 reasons why market is falling today

Stock Market Recap

In the absence of significant catalysts, the Nifty 50 benchmark index kicked off the session with a slight positive tone but lacked sustained buying interest, leading to an immediate downturn in prices. Throughout the day, this weakness persisted, with any attempts at intra-day recovery met with selling pressure. Eventually, a strong sell-off in the last hour resulted in a 1.11% cut, closing a tad above 21,950, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.

"Although the key indices picked up momentum, unfortunately, it favoured the bearish side. The market on Wednesday saw a widespread sell-off, particularly impacting recent outperformers and mid-cap stocks. The session's price action broke below the recent trading range and closed below the crucial 20-day exponential moving average. Furthermore, there's a close proximity to breaking below a rising wedge formation, coupled with a fresh sell signal in the RSI Smoothened, indicating potential further weakness in the near term," highlighted Osho.

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Nifty 50 Outlook

With the monthly expiry session, upside potential appears limited, and any rebounds are likely to encounter selling pressure. Immediate resistance is anticipated around 22,050–22,100, while support levels to watch are last Thursday’s low near 21,875, followed by 21,700, explained Krishan.

Stock Market Tips

Traders are advised to exercise caution, refraining from aggressive long positions and considering lightening their holdings in case of any rebound, according to Osho.

Stock Recommendations For Today by Osho Krishan

On stocks to buy today, Osho Krishan recommended two stocks - Samvardhana Motherson International Ltd and Hindustan Unilever Ltd.

Samvardhana Motherson International Ltd

Samvardhana Motherson International has been in a secular uptrend, hovering above all its EMAs on the daily time frame. Recently, the stock witnessed a price-volume spurt to come out of the slumber zone of the time-wise correction phase. The stock looks poised to test its recent swing high and even to have the potential to surpass in a comparable period. Technically, the 21 DEMA has provided a substantial cushion in the recent period, adding to a bullish quotient. Meanwhile, the positive crossover in the 14-day RSI adds to the primary undertone.

"Hence, we recommend to BUY Samvardhana Motherson International around ₹117, keeping a stop loss of ₹113 for a positional target of ₹123–125," said Krishan.

Hindustan Unilever Ltd

Hindustan Unilever has witnessed a steep correction from the ₹2,670 odd zone to shed nearly 12 percent since the commencement of the new calendar year. The technical parameters have turned extremely oversold, and with the recent developments from the lows ₹2,360–2,380, the stock seems to take a breather and could be seen as an opportunity to accumulate in a staggered manner from a short- to medium-term perspective.

"Hence, we recommend to BUY Hindustan Unilever at ₹2,410–2,400, keeping a stop loss of ₹2,350 for a positional target of ₹2,500," said Osho.

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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.