Stocks to buy for short term: Nagaraj Shetti of HDFC Securities suggests these 2 names; do you own?

Stock market today: The domestic benchmark indices, Sensex and Nifty 50, were on track for a fifth consecutive day of gains on Monday, bolstered by a soft US dollar and an increase in domestic banking stocks.

As of 11:36 IST, the Nifty 50 increased by 1.09% to reach 24,111.80, while the Sensex climbed 1.04% to 79,366.65, marking their highest levels since January 6. ICICI Bank and HDFC Bank, the two largest stocks on the Nifty 50, surged by 0.9% and 1.3%, respectively, achieving record highs following the release of better-than-anticipated earnings.

Market analysts anticipate that the positive trend in Indian stocks will persist throughout the week, primarily due to stable foreign investments and strong international signals. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, mentioned that despite the global economic landscape being fraught with uncertainty, India stands out as relatively robust. India is the sole major economy capable of achieving 6% growth even amid a slowing global environment.

Furthermore, the weakening dollar could lead to increased foreign portfolio investment in India in the near term. The quarterly results from HDFC Bank and ICICI Bank could propel Bank Nifty to new record highs. Foreign Institutional Investors are likely to focus on domestic consumption sectors such as financials, telecom, aviation, hotels, select automobiles, real estate, cement, and healthcare. The market views the potential for India to finalize a trade agreement with the US in the upcoming months as a positive development. From a short-term market perspective, India holds a favorable position.

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Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities

After witnessing a decisive upside breakout of the hurdle on Thursday, Nifty 50 continued its follow-through upmove so far on Monday and is trading higher. The overall daily and weekly chart pattern remains positive and one may expect more upside in the near term. The next upside to be watched for Nifty 50 around 24,200 and 24,550 levels. Immediate support is placed at 23,800.

Technical Picks: Stocks to buy in the short-term

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy this week - L&T Finance Ltd, and Mangalore Refinery and Petrochemicals Ltd (MRPL).

Buy L&T Finance Ltd at ₹169.20, Target of ₹180, Stoploss at ₹163, Timeframe 1 week

After shifting into a larger range bound action as per long term chart, the L&T Finance share price has witnessed a decisive upside breakout of the hurdle recently and is currently trading higher. Volume has expanded during upside breakout in the stock price and RSI shows positive indication.

Buy MRPL Ltd at ₹140.40, Target at ₹150, Stoploss at ₹135, Timeframe 1 week

MRPL share price is currently in the process of showing sharp upside breakout of triangle type formation. Bullish pattern like higher tops and bottoms is intact on the daily chart. Volume and RSI pattern signals more upside for the stock price in the near term.

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.