Technical Picks: Nagaraj Shetti of HDFC Securities suggests these 2 stocks to buy in the near-term

Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, ended their seven-day winning streak on Wednesday, with the Sensex plunging by 728 points due to profit-taking in banking and IT stocks ahead of the monthly derivatives contract expiry.

The Sensex fell by 728.69 points or 0.93 percent, closing at 77,288.50, with 25 of its components finishing in the red. The Nifty 50 decreased by 181.80 points or 0.77 percent, settling at 23,486.85. Over the last seven trading days, the BSE benchmark index had gained 4,188.28 points or 5.67 percent. Likewise, the Nifty 50 increased by 1,271.45 points or 5.67 percent during that same time frame.

Vinod Nair, Head of Research at Geojit Investments Limited, noted that the market saw some profit-taking following recent increases, influenced by the upcoming US tariff announcements next week. Sectors with significant exposure to the US market, including pharma and IT, have experienced some selling pressure.

Oil prices slightly rose due to US sanctions on Iran and expectations of a decrease in US crude inventories. With the recent influx of foreign institutional investors (FIIs), improvement in domestic fundamentals, and attractive valuations, the market is anticipated to exhibit greater stability.

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

After showing weakness from the overhead resistance of 23,800 on Tuesday, Nifty 50 slipped into decline by breaking consecutive seven sessions of rise on Wednesday and closed lower.

A long bear candle was formed on the daily chart, which is indicating a beginning of short-term downward correction in the market, after a sharp rise. The bullish chart pattern like higher tops and bottoms have started to form on the daily chart and present weakness could be in line with the new higher bottom formation.

The market is in a healthy downward correction and one may expect Nifty 50 to bounce back shortly after forming higher bottom. The next lower supports are placed around 23,400-23,200 levels. Any bounce from near the support could challenge the key hurdle again at 23,800 levels.

Technical Picks: Stocks to buy in the near-term

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy this week - Nelco Ltd, and Hindustan Aeronautics Ltd (HAL).

Buy NELCO at ₹896, Target ₹955, Stoploss ₹865, Timeframe 1 week.

Buy HAL at ₹4,135, Target ₹4,400, Stoploss ₹4,000, Timeframe 1 week.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.