Stocks to buy: Nagaraj Shetti recommends Greaves Cotton, Precision Wires shares to buy

Stock market today: India’s stock market benchmarks saw an increase on Thursday, driven by financial sector gains following a suggestion to exempt insurance premiums from taxation, as well as positive performance from Reliance Industries, which offset a decline in IT stocks ahead of the Federal Reserve’s annual symposium.

As of 12:40 IST, the Nifty 50 rose 0.30% to 25,125 . 95, and the BSE Sensex increased by 0.37% to 82,161.07.

The indexes had experienced gains in each of the past five sessions, accumulating around 2%, supported by proposed changes to India’s goods and services tax (GST) system and S&P’s upgrade of the nation’s long-term sovereign credit rating. Investors may proceed cautiously with US tariffs on imports from India set to take effect on August 27 and ongoing uncertainties surrounding peace discussions between Russia and Ukraine.

Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities

Nifty 50

The gradual upside continued in the market on Thursday and Nifty 50 is currently trading higher by 70 points. After the formation of sharp upside gap on 18th August, the market has been moving up continuously and the said upside gap remains open after three sessions of its formation. Hence, the gap could be considered as a bullish breakaway gap, which is normally formed at the important bottom reversals. The underlying trend of Nifty 50 remains positive and the next upside target to be watched around 25,300 in the near term. Immediate support is placed at 25,000.

Technical Picks: Stocks to buy in the short-term

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term – Greaves Cotton Ltd, and Precision Wires India Ltd.

Buy Greaves Cotton at ₹218.50, Target price at ₹238, Stoploss at ₹210, Timeframe 1-2 weeks.

After showing a range bound action in the last few sessions, the stock price has bounced back on Thursday. The immediate support of 200day EMA intact. The daily RSI and volume pattern are showing positive indication for the stock price ahead.

Buy Precision Wires India at ₹184.50, Target price at ₹200, Stoploss at ₹176, Timeframe 1-2 weeks.

The sideways range movement of the last few weeks has resulted in an upside breakout so far this week. The stock price has moved up sharply from near the crucial support of 172 levels. Volume has expanded during upside breakout in the stock price and RSI shows positive indication.

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