Stocks to buy or sell: Osho Krishan of Angel One suggests buying Chalet Hotels, Praj Industries today - 26 December 2024

Stock Market News: The domestic benchmark indices, Nifty 50 and Sensex, began trading positively on Thursday, fueled by anticipation for a year-end rally.

The Nifty 50 index began at 23,775.80 points, increasing by 48.15 points or 0.2%, while the Sensex index opened at 78,557.28 points, climbing by 84.41 points or 0.11%. Both indices rose approximately 0.5 percent shortly after the market opened.

Analysts noted that investors in the market remain hopeful about a year-end rally as the conclusion of 2024 approaches. Nevertheless, market sentiment appears to be subdued, and with only four trading sessions remaining, expectations hinge on a rally that typically begins at the year's end and continues into early January.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the RBI's recent forecast of 6.8% GDP growth for Q3 FY 25, based on current high-frequency data trends, is encouraging news. However, the adjustment of the FY 25 GDP growth estimate from an initial 7.2% to 6.4% indicates the central bank's inadequate assessment of the economy.

It is crucial now for the MPC to implement a rate cut in February. Additionally, the economy requires fiscal stimulus at this time to reach a growth target of 6.6% in FY26. Looking ahead, the market will anticipate both fiscal and monetary support.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The trading session was subdued, with traders opting to maintain light positions ahead of the mid-week holiday. The overall market structure has not changed, as prices continue to fluctuate within the range of last Friday’s significant bearish candle. Market sentiment remains weak, with intraday recoveries encountering selling pressure and a lack of strong positive momentum.

In the last two trading sessions, the 23,900 mark has served as a significant resistance level, coinciding with the 200-day Simple Moving Average (DSMA). For the upcoming monthly expiry, the 23,900–24,000 range is a crucial barrier, and a breakout beyond this range is necessary to generate positive momentum as we approach the end of the year. On the downside, the 23,600–23,500 range, which reflects the lower end of last Friday's bearish candle, acts as immediate support.

Currently, a period of consolidation within this range is anticipated, and a significant breakout is necessary to regain momentum. Although the broader markets have shown some resilience through selective buying, traders should remain cautious, avoid becoming complacent with long positions, and take a selective approach to trading.

Stocks To Buy on Thursday - Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks -Chalet Hotels Ltd, and Praj Industries Ltd.

Chalet Hotels Ltd

Chalet Hotels has experienced a reasonable correction over the past few trading sessions, re-testing the breakout zone at 920. Currently, the stock maintains its bullish outlook, staying above the 21-day exponential moving average (DEMA) on the daily charts. The indicators suggest that the stock is likely to continue its upward momentum in the near future.

Hence, we recommend to BUY Chalet Hotels around 970, keeping a stop loss of 920 for a potential Target of 1,050.

Praj Industries Ltd

Praj Industries has experienced an impressive bull run, consistently holding above its significant EMAs near its all-time highs. The stock appears to be on the verge of a fresh breakout, which could generate momentum in the near term. Furthermore, the technical indicators support a bullish outlook, suggesting strong potential for movement into new territory in the upcoming period.

Hence, we recommend to BUY Praj Industries around 810-800, keeping a stop loss of 760 for a potential Target of 870-880.

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.