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

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, experienced a sharp decline during early trading on Monday, with both indices plummeting over 5% as global equities saw a significant drop.

This reaction followed US President Donald Trump's tariff increases and China's retaliatory measures, raising concerns that a full-scale trade war could negatively affect global economic growth.

In early trading, the 30-share BSE benchmark Sensex fell by 3,939.68 points or 5.22%, reaching 71,425.01. The Nifty 50 dropped by 1,160.8 points or 5.06%, settling at 21,743.65. In Asian markets, Hong Kong's Hang Seng index fell nearly 11%, Tokyo's Nikkei 225 decreased by almost 7%, the Shanghai SSE Composite index dropped more than 6%, and South Korea's Kospi index fell by 5%.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that global markets are currently experiencing increased volatility due to significant uncertainty. There is no clear understanding of how the disruption caused by Trump tariffs will unfold. The most prudent approach in this turbulent market phase would be to adopt a wait-and-see strategy. Investors should consider a few key points.

First, the irrational Trump tariffs are unlikely to persist for an extended period. Second, India is in a relatively favourable position, as its exports to the US account for only about 2% of GDP, meaning the potential impact on India's growth will be minimal. Third, India is in the process of negotiating a Bilateral Trade Agreement with the US, which is expected to succeed in reducing tariffs for India.

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

Nifty 50 witnessed massive selloff on Monday morning on the backdrop of negative global cues, that was ignited after the US President’s reciprocal tariffs. Presently, Nifty 50 made a swing low of 21,743 levels and is showing consolidation at the lows. The huge 650 points opening downside gap has been formed on Monday on the daily chart which signals selling climax in the market. The next lower supports to be watched around 21,700-21,500 band and there is a possibility of an upside bounce from the lower supports in the near term.

Technical Picks: Stocks to buy or sell in the short-term

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy or sell this week - Aadhar Housing Finance Ltd, and Tata Chemicals Ltd.

Buy Aadhar Housing Finance Ltd at ₹427, Target at ₹460, Stoploss at ₹405, Timeframe 2 weeks

After witnessing a sharp weakness on Monday opening, the stock price is currently showing promising upside recovery, Bullish pattern like higher tops and bottoms is intact and the stock price is in the formation of new higher bottom.

Sell Tata Chemicals at ₹789, Target at ₹747, Stoploss at ₹820, Timeframe 2 weeks

The stock price has been in a down trend over the last few months. Bearish lower tops and bottoms is in force on the daily chart. Presently, the stock price is placed at the support and the overall negative chart pattern indicates chances of decisive downside breakout ahead.

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.