Shares to buy: Riyank Arora of Mehta Equities suggests these three stocks to buy in short term

Stock market today: The domestic benchmark indices, Sensex and Nifty 50, fell in early trading on Tuesday as ongoing foreign fund withdrawals and new US tariffs sparked concerns over a trade war.

Marking its fifth consecutive drop, the 30-share BSE benchmark Sensex fell by 201.06 points to reach 77,110.74 during the initial trade. The Nifty 50 saw a decline of 79.55 points, settling at 23,302.05. Market analysts linked the downturn to continued selling by foreign institutional investors (FIIs). However, they believe this creates a chance for long-term investors to buy into large-cap stocks.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the ongoing selling by FIIs in large-cap stocks has brought their valuations to a reasonable level, while the valuations of mid and small-cap stocks remain high. FIIs will undoubtedly start buying in India, but this will occur only when the dollar index weakens.

Vijayakumar said that while we are aware that this will eventually happen, the exact timing is uncertain. What investors should focus on now is acquiring quality large-cap stocks in sectors such as banking, IT, automobiles, pharmaceuticals, and capital goods, and then exercise patience.

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

Nifty 50

The benchmark index touched major support mark of 23,300 in Monday’s trading session and signalling some signs of reversal coming in from lower levels. With the trend being positive and index showing signs of an upward movement, we feel that some reversal is due from lower levels. A major support would be at 23,300 and upside can move towards 23,600 and 23,800 odd levels. As per the risk reward ratio, buying at current levels makes a good trading set-up.

Bank Nifty

Bank Nifty is seen to be moving towards its important support mark of 49,400 on technical charts and an immediate resistance is placed near 51,100 odd levels. With the overall trend being positive and risk reward favouring buyers we feel that a strict SL should be kept at 49,000 mark and upside targets of 51,000 and 51,500 should eventually come on in bank nifty from here on.

Shares to buy for short term

Riyank Arora recommends buying these three stocks in the short term – DOMS Industries Ltd, Carysil Ltd, and Imagicaaworld Entertainment Ltd.

DOMS Industries Ltd

Buy | CMP : 2848 | SL : 2670 | TARGET : 3075

The stock has given a good breakout above its immediate resistance mark of 2830 and indicating good signs of momentum and strength. With the RSI (14) being around 65, the stock is indicating good momentum and strength. A strict stoploss should be placed at 2670 and upward targets of 3075 and above should likely come in as this momentum extends further.

Carysil Ltd

Buy | CMP : 707.45 | SL : 660.00 | TARGET : 800.00

The stock has touched major trendline support of 680 on its weekly time frame charts and indicating good signs of momentum and strength from lower levels coming in. With the technical structure being positive and stock being poised for an upside move, we expect overhead targets of 800 and above to come in. RSI (14) being around 48 and seeing up-tick signs on the daily time frame charts is a sign of momentum and strength on the stock.

Imagicaaworld Entertainment Ltd

Buy | CMP : 69.49 | SL : 65.00 | TARGET : 80.00

The stock has touched major anchor vwap support mark of 66 and showed strong signs of reversal coming in from lower levels. Upside looks likely towards 75 and 80 odd levels in the stock and we feel that the stock should witness a strong up-move. A strict stoploss is adviced near 65 to manage risk well and we feel overall that with rising RSI and stock breaking out above trendline, it should pick-up good strength in few days ahead.

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.