Closing Bell: Alkem Lab to RVNL - Vinay Rajani of HDFC Securities suggests these three stocks to buy in the near-term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced a lackluster performance on Thursday, following a seven-day rally and as investors analysed the earnings report from fast-moving consumer goods giant Hindustan Unilever.

The Nifty 50 fell by 0.34% to 24,247.40, while the Sensex decreased by 0.33% to 79,830.85 as of 14:26 IST. In the prior session, both indices reached their highest closing levels of 2025.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the strength of the Indian economy, the anticipated slowdown in the US economy, the weakness of the dollar, and consistent foreign institutional investor (FII) buying in India amounting to ₹21,263 crores over the past six days are contributing to India's market outperformance.

Nevertheless, the high valuations (Nifty 50 is currently trading over 20 times the forecasted FY 26 earnings) may limit the upward momentum. In the very short term, the market may react to the earnings reports being released. However, looking ahead, concerns will likely arise regarding the timing, nature, and extent of India's response to recent terror attacks and the resulting implications. Therefore, investors should exercise caution while continuing to stay invested.

Market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities

Nifty 50

Nifty 50 has registered a recovery of more than 2,600 points from the recent swing low of 21,743 made on 7th April 2025. After this steep bounce, Nifty 50 has formed “Hanging Man” candlestick pattern on 23rd April 2025. This pattern indicates probability of short-term trend reversal, which further needs to be confirmed by breach of candle’s low in the next sessions. On 23rd April 2025, Nifty 50 made a low of 24,119, below which bearish pattern will be confirmed and till that happens trading longs can be held with that stoploss. On the downside, there is a strong support near 23,900, where the previous swing high is placed.

The positional trend of Nifty 50 is bullish, and corrections should be utilised to create fresh longs. On the upside, 24,545 and 24,800 are key resistances to watch out for Nifty 50.

Technical Picks: Stocks to buy in the near-term

Vinay Rajani of HDFC Securities recommends these three stocks in the near term - CARE Ratings Ltd, Alkem Laboratories Ltd, and Rail Vikas Nigam Ltd (RVNL).

Buy Care Rating( ₹1,224) | Target ₹1,371 | Stop-loss ₹1,105

Care Rating share price has broken out from the downward sloping trendline on the weekly chart. Stock price has broken out from previous swing highs on the daily chart. Stock price has surpassed 20- and 50-days EMA. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is now placed above signal and equilibrium line.

Buy Alkem Lab ( ₹5,185): | Target ₹5,704 | Stop-loss ₹4,920

Alkem Lab share price has broken out from inverted head and shoulder pattern on the daily chart. Stock price has broken out from previous swing highs and 200 DEMA resistance. Stock price is now placed above 20-,50- and 200-days EMA. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is now placed above signal and equilibrium line.

Buy RVNL ( ₹373): | Target ₹425 | Stop-loss ₹352

RVNL share price has broken out from the downward sloping trendline on the weekly chart. Stock price is forming an inverted head and shoulder pattern on the daily chart. Stock price has surpassed 20- and 50-days EMA. Weekly RSI has reached above 50, indicating a sustainable up trend. Stock price has started forming higher top and higher bottom on daily chart.

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.