Stocks to buy or sell: Nuvama’s Sagar Doshi recommends REC, MCX and Hindustan Aeronautics today

Stock Market News: Local benchmark indices Sensex and Nifty 50 had a flat start to the day on Wednesday due to the mix of trading activities of both domestic investors and Foreign Institutional Investors (FIIs).

The Nifty 50 index opened at 24,371.45 points, down 95.40 points or 0.39%, and the Sensex opened at 80,237.85 points, down 131.18 points or 0.16%.

Geojit Financial Services Chief Investment Strategist Dr. VK Vijayakumar stated that the market will be affected by two main factors, one positive and the other negative, in the short term. The positive aspect is the significant decline in foreign institutional investor (FII) sales. ₹548 crore yesterday.

This indicates that FII’s ‘Sell India, Buy China’ strategy is nearing its end. With the increase in local institutional investor (DII) and retail participation in the market, as well as the decrease in FII sales, a short-term market rise may occur, supported by the festive atmosphere. However, the upward trend is expected to be unsustainable as Q2 earnings reports show weakening profitability for FY25.

Nifty 50 Outlook Written by Sagar Doshi, Senior Vice President-Research, Nuvama Professional Clients Group

Nifty 50 closed at 5-day highs and made higher lows in the last 3 sessions, signaling a short-term reversal ahead of its monthly expiry ending on Thursday. The ongoing reversal may continue on the upside towards 24,600/24,850 in this week’s trading. Any decline towards 24,350 will likely be bought for higher targets and 24,220 will act as support at the same level. Bank names are leading the current recovery and the same situation is likely to continue in the coming days.

Bank Chic

Bank Nifty ended at 3-week high and outperformed Nifty 50 throughout the ongoing correction; The index has fallen just -1.24% since the beginning of the month against a -5.21% decline in the Nifty 50 in the same period. Tuesday’s price action negated all the squeezes seen on the index over the last 3 weeks of trading. The rise towards 52,800 / 53,250 has started and any decline towards 51,900 is seen as an opportunity to buy or add long positions.

Stocks to Buy or Sell on Wednesday – Sagar Doshi

On stocks to buy or sell on Wednesday, Nuvama’s Sagar Doshi recommends three stocks: REC Ltd., Multi Commodity Exchange of India Ltd (MCX)And Hindustan Aeronautics Ltd (HAL).

REC Ltd (BUY): LCP : ₹547.50; Stop Loss: ₹518; Target Price: ₹606

The stock lacked downside traction twice after breaking below the 200 DMA. Strong price movements have been seen since the beginning of this week, which looks like it will allow REC to take more short positions. The stock closed at a 9-day high and is poised to rise from here. A short closing move of 8 to 10% could occur, pushing the scenario higher ₹600.

MCX (BUY) : LCP : ₹6,824.75; Stop Loss: ₹6,400; Target Price: ₹7,900

Unscathed by the recent and broader market correction for the index, MCX has held up strongly over the past month after closing at a new record high in Tuesday’s session. MCX has gained almost 50% in the last 2 months as valuations of listed and unlisted exchanges follow the sky northwards. The ongoing move is likely to tighten further to the upside ₹7900 in this run.

Hindustan Aeronautics Ltd (HAL) (BUY) : LCP : ₹4,274.50; Stop Loss: ₹4,110; Target Price: ₹4,600

The stock formed a bullish candle on the daily timeframe with strong volumes. The last 2-3 trading sessions have seen strong rejection of follow-ups below the 200 DMA. Such a candle on a weaker day indicates future better performance in the coming days.

Disclaimer: The above opinions and recommendations are those of individual analysts, experts and brokerage firms and not Mint. We recommend that investors consult certified experts before making any investment decisions.