Shares to buy or sell: Ruchit Jain of 5paisa recommends Wipro, and UltraTech Cement on Dhanteras

The domestic benchmark indices, Sensex and Nifty 50, started slightly lower on Tuesday, following the end of a six-session decline the day before, as caution lingered due to a generally disappointing earnings season and ongoing foreign institutional investors (FIIs) selling.

In early trade, the Sensex rose just 32 points to 80,037.20 and with a 10.30-point fall, the Nifty 50 reached 24,328.85.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that an intriguing aspect of the Nifty 50's rally of 158 points yesterday is that it occurred even with FIIs selling a total of ₹3228 crores, which exceeded the Domestic Institutional Investors (DIIs) purchases of ₹1401 crores. This shift in trend, despite ongoing FII selling, suggests that retail investors are returning to a buying stance.

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

Nifty 50 started the week on a positive note and witnessed a pullback move upto 24,500. However, it faced resistance around that level and gave up some of the intraday gains to end below 24,400 with gains of about three-fourth of a percent.

The much required pullback move was seen on Monday as the RSI readings on the daily time frame charts were in the oversold zone and the global markets were trading with a positive bias. Although, its too early to guess that the worst is behind as the index still needs to surpass crucial hurdles.

Nifty 50 witnessed resistance around 24,500 where high open interest is seen in call options of derivatives segment. A move above this hurdle is required for an up move towards 24,700. As of now, these two levels are seen as immediate hurdles and thus the upmove should be seen as a pullback move only. On the flipside, 24,100 followed by 23,900 are seen as the immediate supports. Traders are advised to be very stock specific and wait for confirmation signs before trading for trend reversals.

Shares to buy or sell today on Dhanteras - Ruchit Jain

On shares to buy or sell on Tuesday, Ruchit Jain recommends Wipro Ltd, and UltraTech Cement Ltd.

Wipro Ltd

The IT stocks have shown a relative outperformance in the recent corrective phase of the market and within this sector, Wipro have shown positive signs as the stock is gradually forming a ‘Higher Top Higher Bottom’ structure. The price volume action is bullish and the RSI oscillator is hinting at a positive momentum.

Hence, short term traders can buy the stock in the range of ₹558-555 for potential near term target of ₹590-600. The stop loss on long positions should be placed below ₹534.

UltraTech Cement Ltd

In last one month, the stock has corrected form its high of 12,100 along with the broader market correction. The stock has now formed a support base around its 200 SMA, and the RSI has given a positive crossover, hinting at a bullish momentum.

Short term traders can buy the stock in the range of Rs. 11,100-11,000 for potential near term targets of ₹11,500 and ₹11,750. The stop loss on long positions should be placed below ₹10,700.

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.