Stock market today: Indian stock markets reduced their initial declines on Thursday as investors perceived the US threat of a 25% tariff and unspecified penalties, set to take effect on August 1, more as a bargaining strategy than a definitive action.
As of 11:40 IST, the Nifty 50 was down 0.26% at 24,791.45 points, while the BSE Sensex fell 0.28% to 81,259.37.
Both indices had dropped approximately 0.9% during early trading.
Following the tariff announcement, President Donald Trump indicated that the US is still in trade negotiations with India. The proposed 25% tariff on Indian imports, along with a penalty related to energy and defense agreements with Russia, poses a clear short-term threat to exports and GDP growth, according to three analysts.
As per Nagaraj Shetti from HDFC Securities, any additional decline in the Nifty 50 may encounter significant support between the 24,600 and 24,500 levels in the upcoming sessions. Shetti recommends two stocks to buy in the short-term. Here’s what Shetti says about the overall market.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After showing a narrow range movement on Wednesday, Nifty 50 slipped into sharp weakness on Thursday on the backdrop of US President Trump’s announcement of 25% tariff and penalty on the trade deal with India and the Nifty 50 is now trading lower by 100 amidst recovery from the lows. The recent bullish pattern like bullish engulfing is still intact and Nifty 50 seems to have taken support of 24,600 for the short-term. Further weakness from here could find strong support around 24,600-24,500 levels in the coming sessions. Immediate hurdle to be watched around 24,900.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – Alkyl Amines Chemicals Ltd, and Star Health and Allied Insurance Company Ltd.
Buy Alkyl Amines Chemicals at ₹2,310, Target at ₹2,460, Stoploss at ₹2,240, Timeframe 1 week
After showing a reasonable downward correction in last week, the stock price has witnessed sharp upmove so far this week. The stock price has broken above the hurdle of down sloping trend line at ₹2,250 and is trading higher. Volume and RSI pattern shows positive indication.
Buy Star Health and Allied Insurance Company Ltd at ₹446.50, Target at ₹477, Stoploss at ₹430, Timeframe 1 week
The range bound movement of the last few weeks seems to be ending now for this health insurance stock. The stock is currently placed at the edge of upside breakout of 200day EMA at ₹448-450 levels. Bullish pattern like higher highs and lows is intact. Daily RSI shows positive indication.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
