Shares to buy: Infosys to Reliance- Prashanth Tapse of Mehta Equities suggests three stocks to buy in the short term

Stock market today: The equity benchmark indices, Sensex and Nifty 50, witnessed a notable drop during Friday's session, largely attributed to a decline in Axis Bank and rising worries about geopolitical tensions following the terrorist attack in Pahalgam, Jammu & Kashmir. After erasing all initial gains, the 30-share BSE benchmark fell sharply by 1,004.04 points, settling at 78,797.39 in late morning trade. The Nifty 50 dropped by 338.1 points, bringing its total down to 23,908.60.

Market analysts observed that concerns over heightened geopolitical tensions following Tuesday's terror attack adversely affected market sentiment. Meanwhile, Asian markets showed positive trends, with South Korea's Kospi index, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all in the positive range.

Foreign Institutional Investors (FIIs) acquired equities worth ₹8,250.53 crore on Thursday, according to exchange data. Additionally, the global oil benchmark, Brent crude, experienced a 0.65 percent increase, reaching USD 66.98 per barrel.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, outlined that the market is currently facing both favorable and unfavorable conditions. A significant favorable factor is the ongoing Foreign Institutional Investor (FII) buying, which has reached a total of ₹29513 crores over the past week. This marks a complete shift from the trend of investing in US stocks during the period of a strong dollar.

Given that FII buying is expected to continue, bearish traders will likely refrain from shorting the market. Another positive element is the comment made by US Treasury Secretary Scot Bessent, indicating that “India is anticipated to be the first country to finalize a bilateral trade agreement with the US.”

The US is also eager to establish as many agreements as possible, particularly since China's response to US efforts has been lukewarm. The strength of the Indian economy should continue to bolster the market. However, a significant challenge that could emerge is the uncertainty surrounding India's reaction to the terror attack and its ramifications, according to Vijayakumar.

Market Views - Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

Nifty 50 is continuing to move in a sideways trend between 24,100 - 24,350 zone indicating good sideways consolidation. Given the overall market condition and base trend being positive, we feel that any indicative move above 24,350 will be a bullish sign for the markets. At present levels of 24,343 - Nifty 50 looks poised for a breakout on the upper side towards 24,400 and 24,500 odd targets. We advise traders to watch 24,000 level closely on the lower side being the major support.

Bank Nifty

Similar to Nifty 50, Bank Nifty is also seen to be consolidating well between its zone of 54,800 - 55,500. We feel that any move below 54,800 will be a negative sign for the market and can drag indices lower. A break above 55,500 will however continue the positive base up-trend that we are in and extend move towards 56,000 odd levels. A strict stoploss should be kept at 54,800 for all active longs to manage risk well.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term - Infosys Ltd, Tata Motors Ltd, and Reliance Industries Ltd (RIL).

Infosys – BUY| CMP ₹1,488 | Buy | SL ₹1,450 | Target ₹1,550

Infosys has recently rebounded from a support zone near ₹1,450, showing signs of renewed buying interest. The RSI is trending upward, indicating positive Momentum. A move above ₹1,500 could accelerate gains toward ₹1,550. The stock is also trading above key moving averages, which reinforces the bullish setup. Traders can look to buy with a stop-loss at ₹1,450.

Tata Motors – BUY| CMP ₹666 | Buy | SL ₹640 | Target ₹700

Tata Motors is holding firm near ₹660 and continues to trade in a rising channel, suggesting strength. A move past ₹670 can trigger a fresh upmove toward ₹700. Momentum indicators like RSI and MACD remain positive. With strong support at ₹640, the risk-reward setup favours buyers. A buy-on-dips approach is recommended with a stop-loss below ₹640.

Reliance – BUY| CMP ₹1,320 | Buy | SL ₹1,300 | Target ₹1,350

Reliance is consolidating in a narrow band, and a breakout above ₹1,320 can spark short-term momentum toward ₹1,350. The stock is showing signs of base formation near ₹1,300, which acts as strong support. Technical indicators are improving, and a close above resistance may attract fresh buying. Traders can initiate long positions with a stop-loss at ₹1,300 for near-term gains.

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.