Buy or sell: Osho Krishan of Angel One recommends buying Bajaj Finserv and Chalet Hotels tomorrow

Maruti Suzuki, Nestle India, Power Grid, and SBI were among the stocks that were on spotlight today. These stocks had positive bias in today’s trading session, while the top laggards were Tata Steel, Tata Motors, Axis Bank, HDFC Bank, HUL, JSW Steel, and HCL Tech.

Also Read: Stock market today: Sensex, Nifty 50 eke out gains ahead of US Fed meet outcome

Investors pay close attention to the US Federal Reserve’s policy decisions; the dot plot is to be released at 23:30 IST today. Additionally, the SBI electoral bonds data that would trickle in by 17:00 IST on March 21 would be another crucial topic.

The 30-share BSE Sensex ended higher by 89.64 points or 0.12% at 72,101.69 level while the Nifty 50 closed at 21,839.10 level, up 21.65 points or 0.10%.

Indian markets recovered, finishing with moderate gains, according to Vinod Nair, Head of Research at Geojit Financial Services. He attributed this recovery to positive global mood and strong direct tax collection.

“As per latest market consensus, the odds of rate cut in June have reduced. The US Fed is likely to delay the cut rate to the latter part of the year due to a resilient economy. Domestic mid & small caps are likely to lag large caps driven by premium valuations, in the short-term,” added Nair.

Also Read: US Fed Meet Live Updates: Powell-led FOMC likely to keep rates steady, market eyes inflation remarks

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Nifty 50 Outlook

The follow-up sell-off certainly portrays a weakened undertone, as any rallies towards the crucial breakdown zone act as a significant hurdle and attract fresh sell-offs. The doji candlestick formation after a volatile session indicates a lack of conviction among counterparties, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.

However, the positioning of the index below 50 DEMA withholds the inherent bearish sentiments, and it is advisable to refrain from chasing momentum on the upside. On the higher end, the 22,000 mark withholds the sturdy hurdle, and an authoritative attainment could only bring back some relief. On the lower end, the potential downside looks deep, with 21,700–21,650 as an intermediate pitstop for the bears, breaching which 21,550–21,500 would be in the vicinity, explained Krishan.

Also Read: Expert Views: Don’t expect fantastic returns from small cap segment going forward, says Jimeet Modi of SAMCO Securities

Stock Market Tips

Going ahead, one needs to be cautious and have a pragmatic approach to deal in such a market scenario. Meanwhile, the broader market is likely to keep the buzz with sectoral movements, and we would advocate for traders to keep focusing on a stock-centric approach for outperformance. Simultaneously, the global bourses need to be tracked closely ahead of the Fed outcome, as they might dictate the immediate tone of our markets, according to Osho.

Stock Recommendations For Thursday by Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks – Bajaj Finserv Ltd and Chalet Hotels Ltd.

Bajaj Finserv Ltd

Bajaj Finserv has been in a corrective phase from the highs of 1,740 odd levels and has plunged a bit below the cluster of its EMAs on the daily time frame. The price correction has led the technical parameters to cool a bit and is emerging as an early sign of retraction from the lows of 1,530. From a risk-reward point of view, the stock is placed in a lucrative zone and could be seen as an opportunity to accumulate over a short- to medium-term time frame. Additionally, the 14-period RSI has witnessed a positive crossover, adding to the bullish quotient at the counter.

“Hence, we recommend BUY Bajaj Finserv around ₹1,580–1,570 and keeping a stop loss of ₹1,540 for a positional target of ₹1,650–1,660,” said Osho.

Chalet Hotels Ltd

Chalet Hotels has been on a stellar bull run and, in recent times, has attracted a decent bout of profit booking, dragging it to the 100 DEMA on the daily chart. However, in the last couple of trading sessions, the counter has re-gained strong traction backed by robust volumes and has retracted from the recent low. The technical parameters also aligned strongly with the primary trend and look poised to re-test it at 52 weeks high in the comparable period.

“Hence, we recommend accumulating in a staggered manner (BUY) CHALET around 780–770, keeping a stop loss of 748 for a positional target of 820–840,” advised Krishan.

Also Read: Anil Ambani-led Reliance Power share price hits 5% upper circuit, what’s driving the rally?

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 decisions.

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Published: 20 Mar 2024, 06:11 PM IST