Buy or sell stocks for short-term: Mehta Equities recommends these 3 shares in a volatile stock market

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, saw a decline on Tuesday as investors remained cautious following US President Donald Trump’s announcement of trade tariffs on neighboring nations just hours after assuming office.

The Nifty 50 decreased by 0.62% to 23,199.70 points by 14:15 IST, while the Sensex dropped 0.90% to 76,376.01. The indices initially opened higher but then reversed direction.

Investors globally assessed the situation with US President Donald Trump, who shortly after taking office on Monday mentioned that his administration was considering 25% tariffs on Mexico and Canada starting February 1.

According to Prashant Tapse, senior vice president of research at Mehta Equities, Trump’s tariff decisions are a significant uncertainty for Indian markets, as the ambiguity around his tariff intentions for India has caused investors to proceed with caution, as reported by Reuters.

The policies of the US under Trump could influence the dollar's strength and Treasury yields, potentially leading to increased inflation, which might result in fewer interest rate reductions. This situation could, in turn, divert foreign investments away from emerging markets like India. Indeed, foreign portfolio investors (FPI) have divested approximately $6.7 billion from Indian stocks and bonds in January alone, as per reports.

Market Views - Riyank Arora, Technical Analyst, Mehta Equities Ltd

Nifty 50

Nifty 50 has a major resistance at 23,400 and is continuing to witness a good sell-off from those levels. A major support is placed around the 23,100 level, below which the index can dip towards 23,050 odd levels. With the rising VIX, markets are unable to sustain any kind of short covering at upper levels. We feel that this negative sentiment should continue for some time.

Bank Nifty

Bank Nifty has its major support placed around the 48,750 level, below which the next support is expected to be near 48,400 and 48,300 odd levels. Overall market sentiment is indicating weakness, and we feel that markets should head lower. 49,100 and 49,400 are immediate resistance levels that should be watched closely on pullbacks.

Shares to buy or sell for short term

Riyank Arora recommends these three stocks in the short term - Oberoi Realty, Trent, and Indian Railway Finance Corporation (IRFC).

Oberoi Realty - Sell

Current Market Price (CMP): ₹1,858

Stop-Loss (SL): ₹1,917

Target: ₹1,750

Oberoi Realty witnessed a sharp breakdown below its major support mark of 1,884 and successfully closed below the same. With the overall chart being negative and the stock seeing a rise in negative momentum, it is expected that the stock should move towards the odd target of 1,750 and below. A set stop-loss is advised near the 1,917 mark to manage risk well.

Trent - Sell

Current Market Price (CMP): ₹5,853

Stop-Loss (SL): ₹6,000

Target: ₹5,600

The stock is seeing a rise in negative momentum, and RSI is indicating weaker conditions. Overall, with the stock breaking down below 6080 and witnessing a sharp surge in volumes, we feel it should head towards 5600 and lower levels. A set stop-loss is advised near the 6000 mark to manage risk well on this trade.

IRFC - Buy

Current Market Price (CMP): ₹141.90

Stop-Loss (SL): ₹137.00

Target: ₹150

The stock is facing a throwback to its anchor VWAP support levels and showing some signs of momentum and strength from lower levels. With the Indian markets approaching budget times, the entire railway pack would be in focus. We expect upside targets of 150 and above to come in with a strict stop-loss placed near the 137 mark to manage risk well. The smaller stop-loss gives a low-risk trade possibility on IRFC, with major AVWAP support being placed around current levels.

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.