Vinay Rajani of HDFC Securities suggests these stocks to buy for short-term

Stock market today: The domestic stock market kicked off the week with a robust performance as the Nifty 50 index commenced at a record high on Monday. The significant increase followed the release of strong GDP figures from India, which bolstered investor confidence and heightened expectations for a potential interest rate reduction by the Reserve Bank of India (RBI). The Nifty 50 index started at 26,325.80, reflecting a rise of 122.85 points (0.47%). The Sensex also opened positively, starting at 86,065.92, an increase of 359.25 points (0.42%). However, the indices were trading flat post noon. The Nifty 50 dropped by 0.07% to reach 26,185.20, while the Sensex fell by 0.06% to 85,654.49 as of 13:58 IST. Last Thursday, both indices reached new historical highs as well. Market analysts indicated that the impressive GDP numbers have greatly supported the indices, increasing the likelihood that the RBI might contemplate a 25 basis points rate cut in its upcoming policy meeting. Market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities Nifty 50 Nifty 50 hit a fresh all-time high at 26,310 followed by short-term consolidation last week. Nifty 50 has been forming higher tops and higher bottoms on the daily and weekly charts, which indicates the bullish trend as per “Dow” theory. Nifty 50 is placed above all key moving averages, with 20 DEMA placed above 50 DEMA and 50 DEMA placed above 100 and 200 DEMA. This setup indicates bullish trend on all time frames. On weekly and monthly charts, Nifty 50 seems to have broken out from the long-term downward sloping trend line, which projects healthy upside from the current levels. Immediate target for Nifty 50 is seen near 26,600, which happens to be symmetrical triangle pattern target. Far resistance is seen near 27,000, where maximum OI is seen on the call side in the December expiry. Previous swing low of 25,842 is expected to act as strong support for Nifty 50 going forward. Bank Nifty has been outperforming, and that trend is likely to continue with potential targets of 60,141 and 61,695. Support for the index is seen at 58,650. Healthcare and Auto sectors are likely to outperform in the coming weeks. Broader market participation is relatively very low as compared to large cap stocks as percentage of stocks placed above 20, 50, 100 and 200 DMA are less than 50. Nifty 500 Index has been finding resistance at previous swing tops. Couple of percentage gains could push the index towards breakout point, which could lead to much awaited rise in momentum in the broader markets. Nifty Smallcap100 and Microcap250 indices have been in to complete consolidation and clearly lacking momentum in the trend. Ratio charts indicate that large cap stocks will continue to outperform the smaller and cash-based stocks. Nifty 50 Strategy: Nifty 50 is in to continuation of an uptrend with potential upside targets of 26,600 and 27,000. Traders are advised to accumulate longs and utilize dips to reenter. Traders can keep the long positions with the stoploss at 25,842 on closing basis. Below 25,842, bullish trend would be violated. Stock Picks Buy Kotak Mahindra Bank ( ₹2,150) | Target ₹2,340 | Stop-loss ₹1,990 Kotak Bank share price seems to have broken out from the recent consolidation with jump In volumes. Primary trend of stock has been bullish as it has been trading above key moving averages. Bank index has been outperforming for last couple of months. Indicators and oscillators have been showing strength in the current trend. Buy Indian Bank ( ₹884) | Target ₹942 | Stop-loss ₹855 Indian Bank share price is on the verge of breaking out from last four week’s consolidation. PSU Bank stocks have showed good momentum in the recent past. Oscillators and indicators have been showing good strength. Stock is placed above key moving averages. 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.