Stocks to buy: Nagaraj Shetti recommends Finolex Industries, Electrosteel Castings shares to buy

Stock market today: Benchmark equity indices Sensex and Nifty 50 fell on Thursday, primarily impacted by significant losses in IT stocks like Infosys and Tata Consultancy Services, following negative signals from US markets. Continuing the downturn from the previous day, the 30-share BSE Sensex dropped 421.66 points, or 0.50%, reaching 83,811.98 in early trading. The Nifty 50 decreased by 121.10 points, or 0.47%, settling at 25,832.75. Analysts indicated that the rising prices of crude oil also contributed to a cautious mood among investors. Brent crude, the global oil benchmark, rose by 0.46 percent to USD 69.72 per barrel. On the sectoral indices, the IT sector experienced the most significant drop, falling 3.95%, while the Focussed IT index reduced by 3.87% on the BSE. Additionally, foreign institutional investors purchased equities worth ₹943.81 crore on Wednesday, whereas domestic institutional investors sold off stocks totaling ₹125.36 crore, as per exchange data. Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities Nifty 50 After showing upmove with range bound action over the last few sessions, Nifty 50 slipped into a gradual weakness on Thursday and is currently trading lower by 90 points. After opening on a weak note the market started to show recovery from the lows of 25,841 in the early part of the session. Nifty 50 is currently facing stiff hurdle around 26,000 levels (mid part of long red candle of 3rd Feb on the daily chart) and is expected to surpass the resistance eventually after a dip. A decisive breakout of 26,000 levels could open next upside towards 26,350-26,400 in the near term. Immediate support is placed at 25,800. Technical Picks: Stocks to buy in the short-term Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term - Finolex Industries Ltd, and Electrosteel Castings Ltd. Buy Finolex Industries at ₹189.50, Target at ₹202, Stoploss of ₹183. Timeframe 1 week After showing a range bound movement in the last few weeks, the stock price has witnessed a sharp breakout of range bound action on Friday and is currently trading higher. We observe a formation of crucial higher bottom reversal pattern around ₹170 levels recently. The volume has started to expand during breakout in the stock price and daily RSI shows positive indication. Buy Electrosteel Castings at ₹75.90, Target at ₹81, Stoploss of ₹73. Timeframe 1 week The stock price has been in an accumulation phase over the last couple of months around ₹68-70 levels. Presently in an attempt of breakout of triangle type pattern at ₹78-80 levels. Bullish chart pattern like higher tops and bottoms is intact on the daily chart. Volume pattern and RSI shows positive indication. 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.