Stocks to buy or sell: Osho Krishan of Angel One suggests buying TVS Motor, Coromandel today

Stock Market News: On Thursday, the domestic benchmark indices, Sensex and Nifty 50, experienced selling pressure, resulting in both indices falling into negative territory following an initially positive start. Analysts have observed that Indian markets are likely to remain subdued in the short term. Nevertheless, there may be some fluctuations in the markets next week following the announcement of the state election results.

The Sensex experienced a decline of 468.17 points, reaching 77,110.21 during early trading hours, while the Nifty 50 fell by 179.75 points to settle at 23,338.75.

According to Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, the rising tensions in the Ukraine-Russia war could exert pressure on the markets. The high level of uncertainty associated with these escalations is likely to result in most market participants adopting a wait-and-see approach. However, a drastic downturn in the markets appears unlikely, given that the overarching market in the US has largely downplayed the situation.

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

The Indian equity market experienced a volatile day of trading. The benchmark index opened strongly, gaining over 300 points initially. However, in the final hour of trading, the bulls lost their momentum, and the market fell back under the control of the bears, erasing most of the day’s gains. Ultimately, the Nifty 50 retraced from its intraday highs to the 23,500 level, closing with a modest gain of 0.28 percent for the day.

The overall market breadth has leaned towards a bullish sentiment, spending a considerable amount of time at high levels. However, the sell-off in the last half hour served as a reality check for market participants. From a technical standpoint, there have been few changes to the price action on a closing basis. Still, the decline before the mid-week holiday emphasizes a cautious outlook in the markets.

In terms of key levels, 23,650-23,700 remains a strong resistance for Nifty 50, while 23,800-24,000 is identified as a significant hurdle for a potential trend reversal in the near term. On the downside, 23,400-23,350 is expected to act as an intermediate support level. If this level is breached, there is a possibility of further downward correction toward 23,200-23,100 in the same timeframe.

The market appears to be volatile, so it is advisable to refrain from making aggressive directional trades in the key indices. At the same time, the technical setup indicates a bearish outlook, which requires caution against being swayed by temporary pullbacks until there is clear evidence of sustained movement in our domestic markets. In the meantime, it is wise to stay informed about global developments.

Stocks To Buy on Thursday - Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks - TVS Motor Company Ltd, and Coromandel International Ltd.

TVS Motor Company Ltd

TVS Motor has seen a healthy correction from its recent peak of 2,598 and has plunged toward the 200-day SMA on the daily charts, coinciding with the lows made in July. Additionally, in the last couple of trading sessions, the stock has witnessed a positive divergence with the 14-period RSI, signaling an initial sign of base formation and trend reversal. The stock is placed in a lucrative zone with a firm risk-reward scenario and is highly likely to change its course of trend in the coming period.

Hence, we recommend to BUY TVS Motor around ₹2,400, keeping a stop loss of ₹2,320 for a potential Target of ₹2,520-2,550.

Coromandel International Ltd

Coromandel International has been firmly hovering above all its significant EMAs on the daily time frame chart, indicating resilience towards the extreme sell-off in the broader markets. Also, the presence of favorable momentum indicators - such as the 14-period RSI and MACD supports the notion that the counter is poised for further gains. With this bullish outlook, there is a strong possibility that the stock will continue its upward journey into new and uncharted price levels in the coming weeks or months

Hence, we recommend to BUY Coromandel International around ₹1,750-1,740, keeping a stop loss of ₹1,680 for a potential Target of ₹1,870-1,890.

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.