Shares to buy: Shriram Finance to SBI- Prashanth Tapse of Mehta Equities suggests three stocks to buy in the short term

Stock market news: The primary domestic market indices, Nifty 50 and Sensex, finished higher on Thursday, marking their best week in more than four years and eliminating all their losses for the year to date, driven by a surge in leading financial stocks.

The Nifty 50 concluded the day up 1.8% at 23,851.65, while the Sensex gained 1.96%, closing at 78,553.2 ahead of the Good Friday stock market holiday on April 18. The indices increased by 4.5% in the week shortened by the holiday, while their major Asian counterparts lagged due to uncertainty surrounding US tariffs and concerns about their impact on economic growth.

Throughout this week, financial stocks surged on the anticipation of improved net interest margins after major banks reduced their deposit rates following the central bank's interest rate cut.

Additionally, the intensifying Sino-US trade conflict may enhance Indian firms' opportunities under the China-plus one strategy, potentially leading to increased demand for credit, as indicated by market analysts.

Reports suggest that the market uptick coincided with foreign investments of about 100 billion rupees ($1.12 billion) on Tuesday and Wednesday, according to provisional exchange data. This influx offered some respite as foreign portfolio investors had been net sellers recently, influenced by concerns over sluggish economic and corporate earnings growth, as well as US tariffs. Despite the rally, analysts note that the benchmarks remain approximately 9% below their all-time highs reached in late September.

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

Nifty 50

Nifty 50 has reached its immediate resistance level of 23,850 on the daily chart and now appears poised for a profit-booking phase, given the sharp recent rally. We recommend a cautious approach—investors should consider booking profits and wait for a dip before initiating new long positions. The 23,400–23,500 zone presents a favourable area for fresh buying on a pullback.

Bank Nifty Outlook

Bank Nifty nearly touched its all-time high today and is showing signs of entering a profit-booking zone. The 54,400–54,500 range is emerging as a strong resistance area, with potential sell-offs expected in most banking stocks around these levels. We suggest investors book profits and look for buying opportunities on dips toward the 52,800–53,000 zone. Key resistance remains near the 55,000 mark.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term - Shriram Finance Ltd, Dr. Agarwals Health Care Ltd, and State Bank of India (SBI).

Shriram Finance: CMP: ₹691 | SL: ₹670 | TARGET: ₹720 / ₹740

Analysis: Shriram Finance is trading above all key moving averages, signaling a strong bullish setup. The stock has shown steady recovery and is forming a higher base on the charts. Price action remains positive, and any move above ₹700 could attract fresh buying. Momentum indicators support further upside. Traders can consider buying with ₹670 as a stop loss.

Dr. Agarwal’s Eye Hospital: CMP: ₹402 | SL: ₹388 | TARGET: ₹420 / ₹430

Analysis: Dr. Agarwal Eye is consolidating near its support zone with RSI around 40, suggesting it's in a mild oversold zone and may be gearing up for a reversal. The structure is stable despite recent corrections, and a bounce from these levels looks likely. A close above ₹410 can strengthen the trend. Buying near current levels offers a good risk-reward opportunity.

State Bank of India (SBI): CMP: ₹797 | SL: ₹778 | TARGET: ₹820 / ₹835

Analysis: SBI is trading comfortably above its 200-day moving average, indicating a solid medium-term trend. The stock has recently seen good accumulation and looks poised to test higher levels. Price strength is visible on the charts with higher lows intact. Momentum could build up further on a move past ₹800. Traders can consider a positional buy with ₹778 as the key support.

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.