Technical Picks: The Indian stock market has faced intense selling pressure over the last two days and been in the red for five sessions in a row, with the uncertainty over Trump tariffs emerging as a major concern for investors.
US President Donald Trump is considering tariffs of up to 500% on countries buying oil from Russia, and has warned India of higher tariffs over the matter. This consists of an initial 25% tariff under a reciprocal tariff order, plus an additional 25% duty linked to India’s continued purchase of Russian crude oil
Furthermore, the US Supreme Court is expected to issue its order on Trump’s “Liberation Day” tariffs on Friday, January 9, keeping investors on the sidelines ahead of the ruling. If the Supreme Court declares Trump tariffs illegal, there would be a rally in India since it has been the worst affected by the 50% tariffs, said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Sensex lost over 670 points in intraday trading today, January 9, taking its cumulative five-day losses to over 2,200 points or 2.6%. Nifty 50, meanwhile, has lost 2.5%.
Amid the current market environment, Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities, shares his technical outlook for Nifty for the week and two stocks to buy.
Nifty 50 Outlook by Nagraj Shetti
After showing weakness amidst a range movement in the last few sessions, Nifty slipped into sharp weakness on Thursday. The short-term trend of the market remains weak, with the overall medium-term trend of the Nifty still positive.
The bullish chart pattern with higher tops and bottoms is intact on the daily chart, and the present weakness could be in line with the new higher bottom formation only after the confirmation.
The underlying short-term trend of Nifty has turned down, and the immediate support of 26100 has been broken on the downside. The next lower support to be watched is around the 25,850 levels. Immediate resistance is placed at 26150.
Technical Picks: Stocks to buy or sell in the near-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy this week – Dabur and Inox Wind.
Dabur: Buy Dabur at ₹525, with a target price of ₹550 and a stop loss of ₹510. The timeframe is a week.
Inox Wind: Buy Inox Wind at ₹120, with a target price of ₹114 and a stop loss of ₹124. The timeframe is a week.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.
