Technical Picks: Vinay Rajani of HDFC Securities suggests these three stocks to buy in the near-term

Stock market today: On Thursday, the domestic benchmark indices, Sensex and Nifty 50, bounced back after a sluggish start. Investors are optimistic about a potential rate cut discussed in the ongoing Monetary Policy Committee (MPC) meeting, according to market experts as per reports. This anticipation has contributed to the revival in market sentiment, indicating a positive outlook among traders.

At 14:06 IST, the Nifty 50 index rose by 191.05 points, or 0.78%, reaching 24,658.50 points. Meanwhile, the Sensex increased by 690 points, or 0.85%, reaching 81,646.33 points.

Experts have noted a positive trend in the markets as investors look forward to the possibility of a rate cut in the upcoming MPC meeting by the Reserve Bank of India (RBI). While expectations for a rate cut remain modest, a shift in the RBI’s stance could lead to a favourable response from the markets, especially given the current economic conditions. Furthermore, the active participation of foreign investors is contributing to the market's upward momentum, providing added support for continued growth.

Mid-market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC securities

Nifty 50

From the recent swing low of 23,263, Nifty 50 has risen more than 1,300 points towards 24,573. From yesterday’s high of 24,573, Nifty 50 has witnessed some profit booking and currently trading near 24,360. Previous swing low and right shoulder low of inverted head and shoulder pattern is placed at 23,873, which is likely to act as a strong support and same should be utilized as a stoploss in long positions. Inverted head and shoulder pattern projects the upside target of 25,400 for the Nifty 50. Higher tops and higher bottoms are well intact, and Nifty 50 has reclaimed its level above 50 and 100 DEMA, which indicates a positional uptrend. Dips should be utilised to create fresh longs in Nifty 50.

Bank Nifty

Bank Nifty has managed to surpass the multiple top resistance of 52,600 and has been sustaining above it. At present index is trading near 53,000 in spot and previous resistance of 52,600 is expected to act as a support going forward. Positional support for the Index is seen at 51,693, which happens to be previous swing low on the daily charts. Resistance for the Index is seen near its all time high of 54,467. Trend of the Index is bullish and dips should be utilised to accumulate longs.

Technical Picks: Stocks to buy in the near-term

Buy Karur Vysya Bank (242.60): | Targets Rs. 275 | Stop-loss ₹214

Stock price found support on upward sloping trend adjoining the lows of week ended 12th May 2023 and 7th June 2024. On week ended 18th Oct 2024, stock broke out from the downward sloping trend line on the weekly charts, which indicates resumption of primary uptrend. Weekly stochastics oscillator has turned bullish. Price breakout was accompanied by rise in volumes. Stock price has been forming higher tops and higher bottoms on the weekly charts.

Buy Container Corporation of India (842): | Targets Rs. 922 | Stop-loss ₹766

Stock price has surpassed the 20 days EMA resistance. Stock price has ben rising with rise in volumes. Stock is placed above all important moving averages, indicating bullish trend on all time frames. RSI on the daily chart has formed positive divergence, which indicates bullish trend reversal. On the week ended 22nd Nov 2024, Stock formed long legged “Doji” candlestick pattern on the weekly chart

Buy Thirumalai Chemicals (377): | Target Rs. 404 | Stop-loss ₹358

Stock price has broken out from “Flag” pattern on the daily charts. Primary trend of the stock is bullish as it is placed above all important moving averages. Stock has been forming higher tops and higher bottoms. Fertilizer and chemical sector has been in to bullish momentum phase on short term charts.

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.