Stocks to buy or sell: Sagar Doshi of Nuvama recommends REC, MCX, Hindustan Aeronautics today

Stock Market News: The domestic benchmark indices, Sensex and Nifty 50, started the day on a flat note on Wednesday due to a mix of buying and selling activities from both domestic investors and Foreign Institutional Investors (FIIs).

The Nifty 50 index began at 24,371.45 points, dropping by 95.40 points or 0.39% and the Sensex opened at 80,237.85 points, showing a decrease of 131.18 points or 0.16%

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market in the short term will be swayed by two main factors—one favorable and the other unfavorable. The positive aspect is the significant drop in foreign institutional investor (FII) selling, which was just ₹548 crores yesterday.

This suggests that the FII strategy of ‘Sell India, Buy China’ may be coming to a close. With increased local institutional investor (DII) and retail participation in the market, alongside diminishing FII selling, a short-term market uplift may occur, bolstered by the festive atmosphere. However, the upward trend is expected to be unsustainable as the Q2 earnings reports point to weakening profitability for FY25.

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

With closing at 5-day highs and making higher lows for the past 3 sessions, Nifty 50 has shown early signs of a short term reversal ahead of its monthly expiry due on Thursday. The ongoing reversal can continue to extend for 24,600 / 24,850 on the upside in this week’s trade. Any dips towards 24,350 is likely to get bought into for higher targets upside with 24,220 acting as support for the same. Current recovery is lead by banking names and the same is likely to continue in the upcoming days as well.

Bank Nifty

Bank Nifty has ended at a 3 week high, outperforming Nifty 50 all through the ongoing correction wherein the index has shed only -1.24% on a month to date basis versus a -5.21% cut on Nifty 50 in the same time. Tuesday’s price action has negated all the congestion seen on the index in the past 3 weeks of trade. Further upside towards 52,800 / 53,250 has now opened with any dips towards 51,900 acting as opportunity to buy or add longs.

Stocks To Buy or Sell on Wednesday - Sagar Doshi

On stocks to buy or Sell on Wednesday, Sagar Doshi of Nuvama recommended three stocks - REC Ltd, Multi Commodity Exchange of India Ltd (MCX), and Hindustan Aeronautics Ltd (HAL).

REC Ltd (BUY) : LCP : ₹547.50; Stop Loss : ₹518; Target Price : ₹606

Stock has lacked downside traction twice after breaking below its 200 DMA. Strong price action is seen from the start of this week which is likely to allow further short covering on REC. Stock has closed at a 9 day closing high and is gearing up for further upside from here as well. A short covering move of 8 to 10% could unfold taking the scrip higher than ₹600.

MCX (BUY) : LCP : ₹6,824.75; Stop Loss : ₹6,400; Target Price : ₹7,900

Unscathed by the recent index wise and broader market correction, MCX has held up strongly in the past one month following to a fresh record high closing in Tuesday’s session. MCX has gained nearly 50% in the past 2 odd months as valuations of listed and unlisted exchanges chase the sky northwards. The ongoing move, is likely to squeeze up further upside towards ₹7900 in this run.

Hindustan Aeronautics Ltd (HAL) (BUY ) : LCP : ₹4,274.50; Stop Loss : ₹4,110; Target Price : ₹4,600

Stock has formed a bullish reversal candle on daily timeframe with strong volumes. A strong rejection of follow up below its 200 DMA was seen in the past 2-3 trading sessions. Such candle on a broader weak day hints towards future outperformance in the coming days.

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.