Indian equity benchmarks rebounded on Tuesday after hitting seven-month lows in the prior session, which was marked by a sharp decline in the rupee and concerns over domestic earnings.
As of 10:05 a.m. IST, the Nifty 50 gained 0.26 per cent to reach 23,144.35 points, while the BSE Sensex climbed 0.29 per cent to 76,545.10. Both blue-chip indexes had declined by approximately 1.4 per cent in the previous session.
“Indian equities ended sharply lower on Monday for the 4th consecutive session, with the Nifty50 closing at 23,087, down 346 points (1.5%). With this, Nifty has fallen almost 5% in the last 7 trading sessions, hitting a 7-month low. The sell-off was broad-based, with all sectoral indices in the red. The Realty index led the decliners, falling 6.5%, followed by Media, Metals & Consumer Durables. The broader markets witnessed massive sell-off, with the Nifty Midcap100 and Smallcap100 declining about 4% each,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Brokerage firm Motilal Oswal has recommended three shares – HCL Tech, Bharti Airtel and Marico – with a decent upside move.
Stocks to buy
HCL Tech: Buy at ₹1995 | Stop Loss: ₹1930 | Target Price: ₹2150
The stock is in strong uptrend and forming higher lows on monthly scale from last few months. On daily scale the stock gave range breakout and formed a strong bullish candle with highest daily close. Good buying interest is visible across IT stocks and holding well in spite of market volatility. Momentum indicator RSI is on the verge of trend line breakout on daily scale which suggests momentum to pick up in coming sessions and holding well above its 50DEMA. The stock has been huge outperformer within IT space and thus we are recommending to buy the stock with keeping stop loss below 1930 levels on closing basis for a new life time high towards 2150 zones.
Bharti Airtel: Buy at ₹1615 | Stop Loss: ₹1570 | Target Price: ₹1720
Bharti Airtel stock is consolidating on weekly scale from last few weeks and a good base formation is seen near 1570 – 1600 zones. On daily scale the stock is on the verge of range breakout above 1625 zones and small follow up buying could set the next leg of rally. It is holding well above its 100 DEMA and risk reward ratio is quite favourable at current juncture. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1570 levels on closing basis for a target towards 1720 zones.
Marico: Buy at ₹674 | Stop Loss: ₹650 | Target Price: ₹720
The stock gave range breakout on weekly scale after nine weeks and formed a small bullish candle with long lower shadow as good buying interest is visible at lower zones. On daily scale the stock is forming higher lows and managed to close above its crucial hurdle of 665 zones. It is holding well above its above its 100 DEMA and momentum indicator RSI is also moving northward which suggests momentum to continue in coming sessions. Thus we are recommending to buy the stock with keeping stop loss below 650 levels on closing basis for a target towards 720 zones.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
