Technical Picks: Nagaraj Shetti of HDFC Sec suggests these two stocks to buy or sell this week amid stock market fall

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, declined over 1% on Monday following an unexpectedly robust US jobs report, which indicated that the Federal Reserve might implement fewer rate cuts given ongoing concerns about sluggish domestic earnings.

Analysts believe that the drop is driven by a strong US Dollar and increasing global bond yields, which are impacting global stock markets negatively. Additionally, the potential for new policies under Trump 2.0 is contributing to a "sell now, think later" mindset among investors. However, experts are hopeful that this negative outlook will dissipate as strong US corporate earnings are anticipated starting January 15.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the market will likely face ongoing pressure due to several significant challenges. The impressive jobs report from the US, showing 256,000 jobs added in December compared to the forecast of 165,000, suggests that expectations for rate cuts in 2025 have been reduced to just one.

With the US unemployment rate falling to 4.1%, there is no longer a need for economic stimulus. This positive economic information is proving to be detrimental for markets that had anticipated multiple rate cuts this year.

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

The downside momentum continued in the market for the fourth consecutive sessions on Monday and the market is trading lower by 98 points amidst upside recovery note. The symmetrical triangle pattern has been broken on the downside and the immediate support has also been violated at 23,265 levels. The overall chart pattern remains negative and pullback rallies towards 23,500 levels could be a sell on rise opportunity. The next lower supports to be watched around 23K mark.

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

1. Buy Crisil Ltd at ₹5,830, Target at ₹6,140, Stoploss at ₹5,640, Timeframe 1 week.

2. Sell Syngene International Ltd at ₹830.50, Target at ₹790, Stoploss at ₹855, Timeframe 1 week.

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.