Shares to buy or sell: Ruchit Jain of 5paisa recommends M&M, Bata India Futures today

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, opened flat on Tuesday as investors remained cautious in light of the upcoming US presidential elections, dull earnings, and ongoing foreign outflows affecting market sentiment. Opinion polls show Democrat Kamala Harris and Republican Donald Trump nearly neck and neck ahead of Tuesday's US presidential voting, with the results likely remaining unclear for days post-election.

The Sensex dropped by 326.58 points, reaching 78,455.66 in the morning session, while the Nifty 50 fell by 86.7 points to settle at 23,908.65.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that while the focus is primarily on the outcome of the US presidential election, a crucial domestic economic concern may not be receiving the attention it warrants.

It's vital to recognise India's notable underperformance: the S&P 500 has risen by 20.45% year-to-date, whereas the Nifty 50 has only increased by 10.36% in the same period. This suggests that internal issues are impacting the markets. Furthermore, with two-thirds of the companies in the Nifty 50 failing to meet their earnings projections in the second quarter, the earnings forecast for FY25 for the Nifty 50 has been significantly lowered from an anticipated 15% to below 10%, explained Vijayakumar.

Market Review and Outlook - Ruchit Jain, Lead Research Analyst at 5paisa

Nifty 50 started the day above 24,300 mark but witnessed selling pressure right from the opening ticks and it corrected sharply to almost test the 23,800 mark. The index then recovered some of the losses towards the end, but still ended just below 24,000 with a loss of about 300 points.

Our markets continued its corrective phase as selling pressure was seen across, with no respite this time in the large cap stocks too. Nifty 50 has ended around the previous swing low of August 2024 where the index formed a support around 23,900 mark. The RSI readings are in oversold zone, but yet to give a positive crossover and hence, it is advisable to wait for a confirmation before pre-empting any pullback move.

It is often seen that in a strong trended phase, the index continues its correction in the oversold zone as well and Nifty 50 seems to be going through one such phase currently. Also, FIIs have significant short positions in the index futures with no signs of covering yet. Hence, we continue with our cautious approach on the market and advise traders to wait for a positive crossover in the RSI and change in data.

The immediate support for Nifty 50 is placed in the range of 23,900-23,800 followed by the 200-SMA around 23,500-23,400. On the higher side, 24,250 and 24,500 are the immediate hurdles on pullback moves.

Shares to buy or sell today on Tuesday- Ruchit Jain

On shares to buy or sell on Tuesday, Ruchit Jain recommends Mahindra & Mahindra Ltd (M&M), and Bata India Futures.

Mahindra & Mahindra Ltd

This stock has seen a time-wise corrective phase in last five months. In the month of October, the Auto stocks went through a price wise corrective phase but this stock has shown a relative outperformance compared to other stocks from same sector. The stock has rebounded from its support around ₹2,700 and the RSI oscillator has given a positive crossover on the daily chart.

Hence, we advise positional traders to buy the stock in the range of ₹2,880-2,860 for potential target Round ₹3,200. The stop loss on long positions should be placed below ₹2,690.

Bata India Futures

The stock has been forming a lower top lower bottom structure and price correction in hinting at a continuation of the corrective phase. The RSI oscillator hints at a negative momentum and hence, we expect the down move to continue.

Short term traders can short Bata November Futures in the range of ₹1,330-1,340 for potential targets around ₹1,300 and ₹1,275. The stop loss on short positions should be placed above ₹1,360.

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.