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

Stock market today: The main domestic stock indices, Nifty 50 and Sensex, experienced declines on Thursday following the US government's implementation of a 26% reciprocal tariff; however, an increase in pharmaceutical companies’ stocks due to their exemption from these duties helped mitigate the impact, alongside a relatively lower tariff rate compared to other Asian nations.

On Wednesday, US President Donald Trump enacted a 26% reciprocal tariff on India as part of a broader strategy that includes a 10% baseline tariff on all trade partners starting April 5, with particularly higher tariffs set at 34% for China beginning April 9.

As of 14:11 IST, the Nifty 50 was down 0.27% at 23,268.45, while the Sensex dipped 0.40% to 76,308.81. Major indices in China dropped 1.5%, and Thailand and Vietnam saw declines of 1% and 6.1%, respectively.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked that the unexpected rise in reciprocal tariffs declared by President Trump may negatively influence markets worldwide. The primary worry is that this situation could provoke retaliatory tariffs from other nations, leading to a potential trade war that could heavily impact global trade and economic growth.

Increased inflation in the US will likely create challenges for the Federal Reserve; it may struggle to perform the rate cuts anticipated by the market in 2025. The likelihood of a recession in the US by late 2025 has grown, which presents concerning implications for the global economy and financial markets.

Market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities

Nifty 50

For last three consecutive sessions, Nifty 50 has been finding support at 20 and 50 days EMA, placed near 23,100. From the recent swing high, Nifty 50 has already corrected more than 750 points, which has resulted in completion of 38.2% retracement of the entire rally seen from 21,964 to 23,869. Any close below 23,100 could drag Nifty 50 towards the next support level of 22,917, which happens to be 50% retracement level.

On the upside, any level above 23,400 could lead to the resumption of an uptrend, which could extend the rally towards next upside targets of 23,650 and 23,869. Between 23,100 and 23,400, trend will be considered consolidation.

Indian market breadth has been very good despite negative global cues, which suggest positive bias in the domestic market. Falling dollar index has also been supporting the equity market sentiment for last one month.

Technical Picks: Stocks to buy in the near-term

Vinay Rajani of HDFC Securities recommends these three stocks in the near term - HealthCare Global Enterprises Ltd, Aadhar Housing Finance Ltd, and Union Bank of India.

Buy HealthCare Global Enterprises Ltd (Rs. 533) | Target Rs. 578,625| Stop-loss Rs. 481

Stock price is on the verge of breaking out from big consolidation. Stock price is hovering around its 52 week and all time high. Stock is placed above all important moving averages. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is placed above equilibrium and signal line. Stock price has started forming higher top and higher bottom on daily chart.

Buy Aadhar Housing Finance (Rs. 450): | Target Rs. 490,512| Stop-loss Rs. 411

Stock has broken out from downward sloping trend line on the weekly chart. Stock price has broken out from the consolidation phase on weekly charts. Stock is placed above all important moving averages. Daily RSI has reached above 50, indicating sustainable up trend. Daily MACD is placed above equilibrium and signal line. Stock price has started forming higher top and higher bottom on daily chart.

Buy Union Bank of India (Rs. 129): | Target Rs. 135.50 | Stop-loss Rs. 123

Stock is placed above 20,50, 100 and 200 DEMA. Indicators and oscillators have turned bullish on daily charts. Stock has been forming higher tops and higher bottoms on the daily chart. The PSU Bank sector has been outperforming from last couple of weeks.

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.