Shares to buy or sell: Rajesh Palviya of Axis Securities suggests these three stocks to buy, hold and accumulate today

Stock Market News: The domestic benchmark indices, Sensex and Nifty 50, are still facing pressure as both are trending weakly, having opened flat on Friday.

The Nifty 50  started at 24,418.05 points, showing a slight increase of 18 points or 0.08%, while the Sensex rose by 0.15%, or 122 points, to begin at 80,187.34.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services noted that recent market actions indicate a notable shift in the long-term trend. The prevailing strategy that propelled the Nifty 50 from the March 2020 COVID low of 7511 to over 26,200 in September 2024 has consistently been to ‘buy on dips.’

With the significant and ongoing selling by Foreign Institutional Investors (FIIs), amounting to ₹98,085 crores this month as of the 24th, the buy on dips approach is proving ineffective. Furthermore, the widespread downward adjustments in earnings forecasts for FY25 and the disappointing Q2 results have shifted sentiments towards a slightly bearish outlook.

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

Over the past four weeks, the benchmark index has been showing a pattern of lower tops and bottoms, indicating a sharp profit formation. Currently, the benchmark index is hovering around the crucial support zone of 24,300 levels. Any breach of this level on a closing basis may lead to further weakness towards 24,000-23,800 levels in the coming weeks. Nifty is currently trading below its 20, 50, and 100-day SMA, confirming a bearish bias. However, any relief rally towards 24,800-25,000 levels could serve as an exit opportunity for short-term traders.

Tube Investments of India Ltd (CMP: ₹4,750)

On the daily chart, the stock has confirmed a "Rounding Bottom" formation at 4,600 levels on a closing basis, indicating bullish sentiments. The stock is well placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, reaffirming the bullish trend. The daily, weekly, and monthly strength indicator RSI is in positive terrain, justifying rising strength across all the time frames. Since July 2022, the stock has been trending higher in a weekly "up-sloping channel," which reconfirms a positive bias.

Investors should buy, hold and accumulate this stock with an expected upside of ₹4,930-5,385 with downside support zone of ₹4,600-4,400 levels.

Aster DM Healthcare Ltd (CMP: ₹442)

The stock has shown a short-term trend reversal on the daily chart, with a pattern of higher tops and bottoms. The recent close indicates a breakout from the 6-7 week consolidation range (438-400) with strong volume, suggesting increased participation. Additionally, the stock has regained support from its 200-day SMA (Simple Moving Average) at 401 and bounced back strongly, indicating strong buying interest at lower levels. The daily Bollinger Band buy signal and the positive RSI on both daily and weekly charts further support the increasing strength of the stock.

Investors should buy, hold and accumulate this stock with an expected upside of ₹485-515 with downside support zone of ₹425-400 levels.

Indigo Paints Ltd (CMP: ₹1,660)

On the daily and weekly time frames, the stock has shown a trend reversal by forming a series of higher tops and bottoms, indicating bullish sentiment. There has been a significant increase in trading volumes over the past couple of months, signaling increased participation at the breakout zone. The stock is trading above its 20, 50, 100, and 200-day SMA, and these averages are also trending upwards along with the stock price, confirming the bullish trend. Additionally, the daily, weekly, and monthly RSI indicators are in positive terrain, supporting the increasing strength across all time frames. The daily and weekly Bollinger Bands are giving a buy signal, further indicating increased participation.

Investors should buy, hold and accumulate this stock with an expected upside of ₹1,825-1,930 with downside support zone of ₹1,600-1,515 levels.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.