Nifty and Sensex Near Key Support; Top Stocks to Buy Today Amid Market Volatility - Read Now
Nifty and Sensex remained on their downtrend curve on Tuesday, bringing the indices close to some critical support levels. The Nifty 50 index ended the session 1.07% lower at 23,883.45 as it hovers close to its previous swing low around 23,800. Analysts are closely watching the 200 DEMA level around 23,540 for further support if the downtrend continues. The S&P BSE Sensex closed at 78,675.18, shedding 1.03% with autos, FMCG, and metal stocks being major contributors to the losses.
Trade Setup Today
Market conditions remain cautious; the key is selective stock picking, says Ajit Mishra, SVP of Research at Religare Broking Ltd. Mishra says that investors watch for adjustments and levels being respected by Nifty and keep an eye on the support levels, especially the 200 DEMA as that is around the bottom-most level and a breach below could unleash more selling pressure. Bank Nifty too has been under consolidation, and Hrishikesh Yedve of Asit C. Mehta feels fresh selling can emerge if it breaks below 50,500.
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Weak Asian and European markets globally, coupled with foreign investor outflows of more than ₹25,000 crore this month, have seen a consistent sell-off in Indian domestic markets. Inflationary concerns, stronger dollars, and higher food prices are creating fear, and the monetary policy set by the RBI will have to come under more pressure, believes Head of Research Vinod Nair at Geojit Financial Services. The Q2 results for companies like Eicher Motors, Torrent Power, and Kalyan Jewellers are expected to be out today. Investors are keenly watching the stock-specific movement based on these results.
Top Stock Picks Today
1. Eris Lifesciences Ltd
Of the Sumeet Bagadia, Executive Director at Choice Broking, one stock that has shown very strong bullish momentum is Eris Lifesciences. This stock may be bought at ₹1,369.45 with a stop loss of ₹1,320 and would target a price of ₹1,444 since the stock seems to be approaching its previous highs.
2. Ami Organics Ltd
Bagadia also recommends Ami Organics in the recent uptrend. The stock is trading around ₹2,046, hence providing a stop loss at ₹1,980 and the target price at ₹2,150 as it continues to attract buying interest.
3. Kernex Microsystems (India) Ltd
Anshul Jain, research head at Lakshmishree Investment and Securities, recommends buying Kernex Microsystems as it offers a shape of a double-bottom pattern. After purchasing, entry around ₹822, stop loss at ₹800, and target at ₹875.
4. Axis Bank Ltd
Axis Bank, which is in the form of triangle on the daily chart, is a buy at ₹1,155 with a stop loss at ₹1,135, aims at ₹1,195.
5. Tata Steel Ltd
Jain also proposes Tata Steel based on double-bottom formation. Here, a buy should be put at ₹144 with the stop at ₹138 and target at ₹154.
These suggestions may help investors look toward selective buying amidst the volatility of market conditions.
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