Shares to buy in short term: Mehta Equities’ Riyank suggests Chalet Hotels, Adani Ports, Motilal Oswal stock to buy

Stock market today: India's key indexes declined in early trading on Tuesday as investors secured profits following a post-ceasefire surge that led the market to its strongest performance in over four years, with April inflation figures now in focus.

As of 13:34 IST, the Nifty 50 was down 1.31% at 24,597.35, while the Sensex dropped 1.53% to 81,172.71. As per reports, analysts anticipate that the benchmarks will consolidate after Monday's nearly 4% rally, which was driven by a ceasefire and reduced cross-border tensions.

Market analysts pointed out that the significant rise in the market on the previous day, mainly due to the ceasefire announcement, suggests it is crucial to evaluate and anticipate the market's likely direction going forward. It is essential to recognize that the substantial 916-point increase in Nifty 50 was not driven by institutional activity.

The total buying from FIIs and DIIs yesterday amounted to only ₹2,694 crores. This indicates that the market's rise was primarily fueled by short-covering and purchases from HNIs and retail investors. This suggests that institutional activity may remain low in the upcoming days, which could hinder the ongoing rally, according to experts.

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

Nifty 50

Nifty 50 rallied sharply, gaining nearly 900 points, and decisively broke above the 24,800–24,850 resistance band. A bullish candle formation on the daily chart signals strong buying interest. The Relative Strength Index (RSI 14) now reads 67, reflecting solid upward momentum. Meanwhile, the Rate of Change (ROC) has moved above its neutral point to 2.45, indicating increasing strength in the current move. Going forward, the index is likely to head towards the 25,200–25,300 zone. On any dip, 24,700 will act as immediate and critical support.

Trade Strategy: Consider buying Nifty 50 May Futures on a pullback near 24,900–24,950

Stop Loss: 24,750

Upside Targets: 25,200–25,300

Bank Nifty

Bank Nifty surpassed its recent hurdle at 55,000, backed by a noticeable rise in traded volumes. The next major resistance lies between 55,600–55,700, where some selling pressure or booking of profits could emerge. On the downside, 54,900 will now serve as the key support zone. RSI (14) stands at 62, suggesting a healthy trend continuation in the banking space. We anticipate the index to extend its upmove in the coming sessions.

Trade Strategy: Buy Bank Nifty May Futures around 55,400–55,600

Stop Loss: 55,000

Upside Targets: 55,900–56,100

Shares to buy for short term

Riyank Arora recommends these three stocks in the short term - Chalet Hotels Ltd, Adani Ports and Special Economic Zone Ltd, and Motilal Oswal Financial Services Ltd.

1. Chalet Hotels

Buy | CMP: ₹870 | Stop Loss: ₹850 | Target: ₹925

Chalet Hotels shares has broken out of a triangle pattern, supported by a significant jump in volume. The RSI (14) is placed at 62, indicating sustained strength, while the MACD has just triggered a positive crossover, enhancing the bullish setup. The structure suggests an upward move towards ₹925. Maintain a protective stop at ₹850.

2. Adani Ports

Buy | CMP: ₹1,362 | Stop Loss: ₹1,290 | Target: ₹1,500

Adani Ports shares has convincingly breached its resistance near ₹1,300, showing strong upward momentum. RSI (14) is at 68, highlighting robust strength. MACD indicators also confirm the ongoing positive trend. The stock looks poised to move towards ₹1,500. Keep stop loss fixed at ₹1,290 for risk control.

3. Motilal Oswal

Buy | CMP: ₹736 | Stop Loss: ₹700 | Target: ₹780

Motilal Oswal shares has surged past the ₹704.65 resistance level with a strong increase in volume, indicating renewed buying interest. RSI (14) stands at 61, and MACD has turned positive with a fresh crossover, reinforcing the bullish bias. The stock has potential to test ₹780 in the near term. A stop loss at ₹700 is advised.

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.