Stocks to buy or sell: Sagar Doshi of Nuvama suggests ONGC, Oberoi Realty, Max Health today - 8 January
- Stocks to buy or sell: Sagar Doshi of Nuvama Professional Clients Group recommends these three stocks today- Oil and Natural Gas Corporation Ltd (ONGC), Oberoi Realty Ltd, and Max Healthcare Institute Ltd.
Stock Market today: Selling pressure reemerged in the Indian stock markets on Wednesday, as both indices dropped shortly after initially starting with slight gains. The Nifty 50 index commenced at 23,746.65 points, reflecting an increase of 38.75 points or 0.16 percent, while the Sensex also rose, opening at 78,319.56 points with an uplift of 120.45 points or 0.15 percent.
Analysts suggest that there are currently no indications of imminent relief for the Indian markets. There are expectations that individual company earnings and the upcoming budget may offer some support. The markets continue to witness sustained selling from foreign portfolio investors in crucial sectors such as financials.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the trend of robust US economic data impacting emerging markets is ongoing. The yield on the US 10-year bond has surged to 4.67% due to better-than-anticipated employment figures and positive signals from the services sector. This suggests that the Federal Reserve may decide to maintain interest rates in January, which will likely lead to further strengthening of the dollar and an increase in bond yields.
The implications of this for the Indian economy indicate that the RBI might keep rates steady in February, contrary to market expectations of a reduction. In this macroeconomic context, foreign institutional investors are expected to continue their selling, exerting downward pressure on the market.
Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group
Nifty 50 witnessed a wider crack on the first trading day of this week breaking and closing below its 200 DMA support, negating the potential up move it showed signs for all of last week. The index is now back on track to retest 23,300 on downside. The support of 200 DMA of 23,900 is now likely to act as resistance on upside and hence any bounce near the 23,800 zone is likely to get sold off for 23,300 downside.
Bank Nifty
Bank Nifty on the other hand flipped to a larger extent underperforming Nifty as it hit a fresh 4.5 month low on charts. Bank Nifty is on the verge of facing a 6 month long head and shoulder pattern breakdown with neckline seen at 49,600 on a closing basis. For now a trade between 49,600 - 50,600 could be seen playing out for the rest of this week on the index unless a clear path is not formed by the index on daily closing basis.
Stocks To Buy or Sell on Wednesday- Sagar Doshi
On stocks to buy or Sell on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Oil and Natural Gas Corporation Ltd (ONGC), Oberoi Realty Ltd, and Max Healthcare Institute Ltd.
ONGC (BUY) : LCP : 263.49; S/L : 251; Tgt : 280
Shares of ONGC were drooling under pressure in second half of December 2024 after it broke below a bearish cup and handle pattern, however that bearish price action has negated strongly from the start of this new calendar year due to multiple external triggers. This has created a huge short covering move on the stock while a 50% retracement of its 30% correction seems to be a realistic target on the same. Momentum is likely to continue till 280/290 on the scrip in the short term.
Oberoi Realty (BUY) : LCP : 2,268.40; S/L : 2,196; Tgt : 2,535
Stock has been in a sideways consolidation for the past 3 weeks now, and Tuesday’s price action confirms beginning of fresh leg upside. Oberoi Realty has been outperforming its peers as well as the sectoral index Nifty Realty as the index has cooled of nearly 14% from its recent high in the past 2 quarters, while the stock has gained 35% in the same period. This outperformance is likely to continue for another 10-12% upside on the stock as consolidation nears to an end as per daily chart pattern.
Max Healthcare Institute (BUY) : LCP : 1,198.35; S/L : 1,145; Tgt : 1,310
Stock has given its second highest closing ever as it breaks out from a fresh pole and flag pattern on daily charts. Stock has been outperforming leading indices for the past 4 months now, ever since broader and leading market started its correction from Sept 2024. Another 8-10% upside is set on cards and set to unfold as a part of the flag pattern target as MAXHEALTH marks an end to its brief 2 week consolidation.
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.
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