Stock Picks: Sagar Doshi of Nuvama suggests buying Balrampur Chini, PCBL Chemical, Bikaji Foods today - 2 April 2025

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, climbed slightly at the start of trading on Wednesday following their worst performance in a month during the previous session, with caution prevailing as investors anticipated the latest tariff announcements from US President Donald Trump.

At 9:15 IST, the Nifty 50 increased by 0.12% to reach 23,192.6, while the Sensex rose by 0.16% to 76,146.28. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, mentioned that the uncertainty surrounding reciprocal tariffs is expected to decrease with today’s tariff announcement.

However, due to Trump’s previous inconsistencies regarding tariffs, this uncertainty is likely to persist beyond today. It seems that the foreign institutional investors’ (FIIs) decision to become net buyers in the final days of March was influenced by year-end factors.

The short-covering triggered by FII purchases contributed to India’s strong performance in March. With FIIs now selling ₹10,255 crores in the cash market over two days, short selling has resumed. This trend was evident in the sharp decline of 353 points in the Nifty 50 yesterday.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50

Having rallied nearly 1,900 points from its 9 month low in March, Nifty 50 has now retraced 38.2% of this move on Fibonacci retracement scale. Given the price action on Nifty 50 yesterday, it could well retrace 50% of this whole 1,900 point rally on account of jitters on the tariff news. The index continues to hold above the 6 month trendline breakout seen on weekly charts and this pullback is just a retesting of the same. The broader trend remains buy on dip and levels of 24,000 could be soon seen by the end of this month. Markets are nervous ahead of the tariff implementation as well as RBI MPC meet next week. For now 22,900 -23,000 zone is seen as a strong support for Nifty 50.

Bank Nifty

In line with Nifty 50, Bank Nifty as well shred close to 1.5% in Tuesday’s session. Bank Nifty has retested its 200DMA sub 51,000 mark after completing its initial targets at 51,650 which we had highlighted last week. The index has been leaning forwards in counts of - one step back and two step forward. Any dips between 49,900 and 50,400 are likely to get bought into for a strong up move towards 52,500, given the outperforming stance of the index against Nifty 50 for the past 6 months. Bank Nifty is down less than 4% v/s a drop of 10% on Nifty 50 in the past 6 months.

Stock Picks: Stocks To Buy on Wednesday- Sagar Doshi

On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Balrampur Chini Mills Ltd, PCBL Chemical Ltd, and Bikaji Foods International Ltd.

Balrampur Chini Mills Ltd (BUY): LCP: ₹556.95; SL: ₹532; TGT: ₹596

With stock breaking above its 200 DMA resistance in last fortnight, Balrampur Chini Mills share price has also given a breakout above sloping trendline resistance confirming a flag pattern breakout on daily charts. The consolidation above its 200 DMA before resuming the move forward confirms the presence of buyers for an anticipated up move towards 600 odd in the next couple of trading days.

PCBL Chemical Ltd (BUY): LCP: ₹423.90; SL: ₹405; TGT: ₹470

Higher high, higher low formation seen on charts of PCBL Chemical with the stock sustaining above its recent dynamic resistance plotted on the 200 DMA. Scrip is on the verge of giving a fresh momentum breakout once it starts trading above the resistance of 430 created by a downward sloping trendline. A quick 10% move can unfold from the current set up at which the stock holds.

Bikaji Foods International Ltd (BUY): LCP: ₹691.95; SL: ₹665; TGT: ₹760

Bikaji share price has given a breakout from a 6 month falling trendline resistance. In the past 4-6 weeks of trade, stock has shown strong signs of bottom out by taking support at 25 month trendline support on weekly charts as well as forming lower highs on daily charts. Given the base formation and momentum push, the stock can jump another 8-10% from CMP to hit its 200 DMA resistance above 760 odd.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.