Shares to buy in short term: Mehta Equities’ Riyank Arora suggests Solar Industries, Prestige Estate, CDSL stock to buy

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, commenced the Tuesday session positively, buoyed by significant inflows from foreign portfolio investors (FPIs) and domestic institutional investors (DIIs). However, both the indices were trading flat at noon.

At 12:30 IST, Nifty 50 was trading 1.95 points lower at 24,326.55; and Sensex was up 58.70 points at 80,281.27.

The Nifty 50 index began trading at 24,370.70, climbing 42.20 points or 0.17 percent, while the Sensex rose by 178 points to start at 80,396.92, reflecting a gain of 0.22 percent. Both indices maintain their upward trajectory.

Market analysts pointed out that the increases are mainly fueled by positive investments from both domestic and international sources. Nonetheless, they warned that uncertainty remains due to the geopolitical threat of possible military action against Pakistan.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the ongoing Foreign Institutional Investor (FII) purchases, which have continued for nine consecutive days totaling ₹34,940 crores, are a strong support pillar for the market. India's potential for relative outperformance compared to other major economies may encourage FII inflows and provide resilience to the market.

The statement by US Treasury Secretary Scott Bessent yesterday, indicating that “I would guess that India would be one of the first trade deals we would sign,” is a significant positive development for India.

Nevertheless, investors should remain cautious in the short term given the considerable uncertainty stemming from the border tensions.

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

Nifty 50

Nifty 50 has given a good breakout above its immediate resistance mark of 24,365 however failing to hold strength on higher levels. Given the current technical structure and persistent selling that has been coming in on higher levels, we feel that the index should likely take a breather and see a dip towards 24,200 and 24,150 odd levels. Resistance is placed around 24,450 above which we can see fresh buying coming in on the benchmark.

Bank Nifty

Bank Nifty also witnessed a breakout above 55,600 mark however failing to hold strength on higher levels which is showing some signs of profit booking in the index on higher levels. Technically, we feel that the index should see a dip towards 55,100 and 54,900 odd levels on the lower side. We advise a cautious approach for the upcoming week on the same.

Shares to buy for short term

Riyank Arora recommends these three stocks in the short term - Solar Industries India Ltd, Prestige Estates Projects Ltd, and Central Depository Services (India) Ltd (CDSL).

1. Solar Industries - Buy

CMP : ₹13,500 | SL : ₹13,000 | TARGET : ₹15,000

Solar Industries share price has given a strong breakout with a notable surge in volumes above its all-time high resistance mark of ₹13,298 and showing strong signs of momentum pick up. With the RSI (14) being around 77 on daily time frame charts and 74 on its monthly time frame, the overall momentum looks strong and stock should see an upside rally towards ₹15,000 and above price targets. A strict stoploss should however be maintained at ₹13,000 mark to manage risk well.

2. Prestige Estate - Buy

CMP : ₹1,358 | SL : ₹1,335 | TARGET : ₹1,425

Prestige Estate share price has given a good breakout above its recent swing high resistance mark of ₹1,354 and showing good signs of momentum pick up. With volumes in the stock being strong and RSI 14 being around 65, the stock is indicating overall strong signs of momentum. A strict stoploss should be kept at ₹1,335 mark to manage risk well and we feel that the stock is poised for potential upside targets of ₹1,425 and above.

3. CDSL - Buy

CMP : ₹1,360 | SL : ₹1,300 | TARGET : ₹1,425

CDSL share price has given a good breakout above its anchor vwap resistance mark of ₹1,340 and holding well above the same. With the stock consolidating well in last few trading sessions and showing good signs of momentum, we feel that the stock can head higher towards ₹1,425 and above. Technically, strong setup along with supported volumes and good consolidation is indicating a breakout possibility in the stock towards potential targets of ₹1,425 and above. A strict stoploss should be placed at ₹1,300 mark to manage risk well.

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.