Technical Picks: Nagaraj Shetti of HDFC Securities suggests selling these 2 stocks amid stock market crash today

Stock market today: The Indian stock market experienced a steep decline during intraday trading on Monday, January 27, with the benchmark Sensex dropping about 900 points and the Nifty 50 nearing the 22,800 mark amid widespread selloffs across various sectors. Analysts attributed this downturn to disappointing earnings reports that fueled investor concerns about a prolonged slowdown in corporate profits.

On the international front, US President Donald Trump underscored his commitment to tariffs, initially threatening to impose them on Colombia over a dispute related to migration. However, these punitive measures were put on hold following the negotiation of a deal.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, indicated that market sentiment has weakened significantly. There has been sustained Foreign Portfolio Investor (FPI) selling, which has reached ₹69000 crores in January so far, putting additional pressure on the market. While Domestic Institutional Investors (DIIs) have stepped in with purchases amounting to ₹67000 crores in the same period, the overall market continues to feel the strain.

A key concern contributing to this sentiment is the recent threats from President Trump, including a proposed 25% tariff on Colombia due to its refusal to accept deported illegal immigrants. Furthermore, there are discussions about tariffs on Canada and Mexico, which could take effect from February 1st. This raises significant questions in economic and market circles regarding whether Trump will follow through on his threats to impose additional tariffs on countries like China, among others. These uncertainties are weighing heavily on market performance.

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

Nifty 50

After showing weakness from the highs on Friday, Nifty 50 continued to decline on Monday and is currently trading lower by 120 points. The immediate supports of 23,000 has been broken on the downside and Nifty 50 showing consolidation at the lows as of now. The overall chart pattern remains negative and we expect Nifty 50 to find support around 22,800-22,700 levels in the short term. Immediate resistance is placed at 23,100.

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

Nagaraj Shetti of HDFC Securities recommends these two stocks this week - Housing & Urban Development Corporation Ltd (HUDCO), and Hindustan Copper Ltd.

1. Sell Housing & Urban Development Corporation Ltd (HUDCO) at ₹206, Target of ₹195, Stoploss at ₹212, Timeframe 1 week.

2. Sell Hindustan Copper Ltd at ₹234, Target of ₹222, Stoploss at ₹241, 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.