Buy or sell stocks for short-term: Mehta Equities recommends these 3 shares in a volatile stock market

Stock market today: The key domestic indices, Nifty 50 and Sensex, started the day on Tuesday with little change, as the threat of selling persists in the markets, though they are currently in an oversold position. Analysts indicated that following yesterday’s decline, the markets are nearly in the oversold range. While there may be an initial increase from this point, the focus will be on whether investors adopt a “sell on every rise” approach or if the markets begin to climb from here.

The Nifty 50 rose by 0.32% to reach 23,160.15 points as of 13:43 IST, while the Sensex climbed 0.25% to 76,516.43.

Dr. V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, noted that the market appears to be slightly oversold, which may result in a short-term rebound. However, if such a recovery occurs, it is expected to be temporary. Mid-cap and small-cap stocks are likely to face additional difficulties.

Asian markets showed mixed performance on Tuesday as investors engaged in bargain hunting following recent declines, offset by persistent concerns regarding the global economic outlook and the potential effects of a second Trump presidency, according to reports.

Traders have significantly reduced their predictions for the number of times the Federal Reserve will lower interest rates through 2025, revising it down to just one cut from four anticipated last year, with discussions even suggesting that the next action could be a rate increase due to ongoing inflation issues and concerns related to Trump, as indicated by recent reports.

Market Views – Riyank Arora, Technical Analyst, Mehta Equities Ltd

Nifty 50

The Nifty 50 index has breached the critical support level of 23,250 and closed below it, indicating a shift in the overall trend to negative. With psychological support at 23,000, the index is anticipated to move lower towards 22,700 and 22,500 in the near term. Risk management is essential, with 23,300 acting as a critical resistance level for any upward movement.

Bank Nifty

Bank Nifty has fallen below the key support level of 49,500, experiencing a significant decline of approximately 1,500 points from the breakdown level. Currently trading around 48,100, the next major support lies at 48,000, with further downside potential towards 47,000 and 46,500. Resistance is observed at 49,000, which serves as a crucial level for risk containment.

Shares to buy or sell for short term

Riyank Arora recommends these three stocks in the short term -Zomato, Piramal Pharma, and Max Healthcare.

Zomato – Sell

Current Market Price (CMP): ₹227.15

Stop-Loss (SL): ₹242.50

Zomato has seen a decisive breakdown below its immediate support level of 239.45 and closed below its 200-period Simple Moving Average (SMA), signaling further weakness. The RSI (14) is currently at 24, indicating oversold conditions and weak momentum. While the trend remains bearish, any pullback towards the breakdown level could provide fresh selling opportunities. The stock is expected to decline further towards the target of 205, with a strict stop-loss at 242.50 to manage risk effectively.

Piramal Pharma – Buy

Current Market Price (CMP): ₹232

Piramal Pharma is showing bullish momentum, supported by strong buying interest around the ₹220 level, which serves as a crucial support zone. The stock is nearing its immediate resistance at ₹250, and a breakout above this level could open the door for further gains. The RSI shows improving momentum, adding to the positive outlook. A possible retest of the key support level at ₹220 could offer an opportunity for accumulation, strengthening the case for an upward move. Buying at the current price of ₹232, with a stop-loss at ₹220, presents a favorable risk-reward ratio with a target of ₹250.

Max Healthcare – Sell

Current Market Price (CMP): ₹1,082.45

Stop-Loss (SL): ₹1,130.00

Max Healthcare has formed a double-top pattern on the daily charts, followed by a decisive breakdown below the critical support level of ₹1,100, signaling bearish sentiment. The RSI (14) is around 41 and continues to weaken, reflecting declining momentum. The stock is likely to approach the trendline support near ₹1,030, which aligns as a potential downside target. Any pullback toward the ₹1,100 level could provide a fresh opportunity to short-sell. A strict stop-loss at ₹1,130 is recommended to effectively manage risk.

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.