Stock market today: The benchmark indices Sensex and Nifty experienced a significant decline on Friday due to foreign fund withdrawals and a lackluster beginning to the quarterly earnings season, which negatively affected investors’ mood. Analysts noted that the sentiment surrounding banking stocks is particularly cautious following Axis Bank’s recent financial results, which did not meet market expectations.
The 30-share Sensex plummeted by 651.11 points or 0.79% to reach 81,608.13 during the trading day. Similarly, the 50-share Nifty 50 fell by 192.8 points or 0.76% to settle at 24,918.65.
Prashanth Tapse from Mehta Equities suggests that if the Nifty 50 remains below 25,000, it may swiftly drop to 24,800 or even lower, making risk management crucial in the current circumstances. Tapse recommends these three stocks to buy in the near-term. Here’s what he says about the overall market.
Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities
Nifty 50
Nifty 50 has fallen below the important 25,000 mark, showing that the market is turning more negative. This break suggests that the index may move down further, with the next support at 24,800. The failure to stay above 25,000 means sellers are still in control, possibly due to both global and local worries. Technical signals like RSI show weakness. Traders with short positions should keep a strict stop-loss at 25,100. If Nifty 50 stays under 25,000, it could quickly fall to 24,800 or lower, so managing risk is very important in these conditions.
Bank Nifty
Bank Nifty has slipped below its key support of 56,600, making banking stocks more vulnerable. The index could drop further to 56,000 or even 55,500, with 55,000 as a major support if selling continues. Technical indicators show a negative trend, and many private and PSU banks are under pressure. The short-term view is weak, so traders should keep a stop-loss at 57,000 on their shorts. Unless Bank Nifty moves back above 56,600, more declines are possible. It’s best to wait for clear signs of recovery before buying aggressively.
Shares to buy for short term
Prashanth Tapse recommends buying these three stocks in the short term – Enviro Infra, Tata Motors, and Astral.
Enviro Infra – Buy
Buy at: ₹299 | Stop Loss: ₹294 | Target: ₹325, ₹330
Enviro Infra share price is starting to recover after a recent fall. The stock is close to strong support at ₹294, giving a good entry point with low risk. Technical indicators point to a possible move up towards ₹325 and ₹330. Traders can consider buying at the current price, but must keep a stop-loss at ₹294. Rising volumes will add confidence to the bullish view. If the stock closes below ₹294, the positive outlook will not hold, so following the stop-loss is important.
Tata Motors – Buy
Buy at: ₹684 | Stop Loss: ₹650 | Target: ₹750
Tata Motors share price looks attractive after falling back to ₹684. The stock is holding above key averages and may bounce back to ₹750. Technical charts, including RSI, show signs of a possible recovery. Traders should set a stop-loss at ₹650 to control risk. If the price goes above ₹700 and stays there, it will be a stronger buy signal. Weakness can be used to buy more, but if it falls below ₹650, positions should be exited.
Astral Ltd. – Buy
Buy at: ₹1,507 | Stop Loss: ₹1,450 | Target: ₹1,650, ₹1,700
Astral share price is moving sideways near support at ₹1,507 and could bounce back from here. The overall trend is still positive, with targets at ₹1,650 and ₹1,700 if buying picks up. Short-term technical indicators are showing some stability. Buy at current levels with a stop-loss at ₹1,450 to protect downside. If the price breaks above ₹1,530, it will confirm the bullish view. As long as the stop-loss is respected, the chances for higher levels remain good.
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.
