Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy in the short term

Stock market today: The major domestic stock indices, Nifty 50 and Sensex, declined on Friday due to concerns regarding corporate earnings impacting investor sentiment, although IT stocks managed to stand out after statements from TCS, a leader in the sector, hinted at potential early signs of demand recovery. Nevertheless, the blue-chip indices made a slight recovery and were trading flat post noon.

Market experts indicate that the current situation is leaning more towards risk rather than optimism, as the ongoing issues of weak earnings persist alongside a slowdown in national growth. Regardless, the upcoming Union Budget for 2025, which is scheduled to be presented on February 1st, along with possible easing of monetary policy, could provide some alleviation.

Asian shares experienced a decline on Friday following the closure of US markets in observance of a National Day of Mourning for former President Jimmy Carter. US futures were down, and oil prices saw an upward trend.

Across the region, markets experienced a widespread drop, which analysts attribute to a diminishing confidence in the likelihood of further interest rate reductions by the Federal Reserve, especially in light of recent data indicating unexpected strength in the US economy.

Dr. V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, pointed out that with the onset of the results season, there will be significant stock-specific movements in the market based on earnings reports. The earnings from TCS suggest that the IT sector is likely to remain robust.

Major banking sector results are expected to be favorable; however, due to Foreign Institutional Investor (FII) selling, the sector might not respond positively. In a challenging market, certain pharma stocks and select auto companies such as Eicher, M&M, and Bajaj Auto are likely to be potential outperformers.

Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

The Nifty 50 index has a crucial support zone at 23,350–23,250 levels. After a dip of approximately 140 points, this support is expected to hold, paving the way for a pullback towards the 24,000 mark. Traders can consider buying around current levels, with a strict stop-loss set at 23,250 on a daily closing basis.

Bank Nifty

Bank Nifty has broken below the key support at 49,200, signaling a potential decline toward 46,500–46,000 levels. It’s prudent to adopt a wait-and-watch approach here. A meaningful reversal would be confirmed only if the index reclaims 49,600–50,000 levels.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term –

Polycab

Buy | CMP: ₹6,662 | SL: ₹6,500 | Target: ₹7,025

Polycab is trading near its gap support of ₹6,645 and showing early signs of recovery. The immediate resistance at ₹7,000 serves as the potential target. A strict stop-loss at ₹6,500 is advised for risk management. The stock’s strong technical setup and robust volumes make it an attractive buy at current levels.

Kotak Bank

Buy | CMP: ₹1,771 | SL: ₹1,720 | Target: ₹1,850

Kotak Bank is trading around its anchor VWAP support of ₹1,770, signaling a potential reversal. Immediate resistance lies at ₹1,820– ₹1,850, which serves as the target range. Recent volume surges suggest a pickup in momentum, making this a promising opportunity. Maintain a stop-loss at ₹1,720.

ICICI Bank

Buy | CMP: ₹1,252 | SL: ₹1,215 | Target: ₹1,310

ICICI Bank is holding near its anchor VWAP support of ₹1,250. The strong support level at ₹1,215 doubles as a strict stop-loss. On the upside, targets are pegged at ₹1,310. With the RSI (14) hovering around 36, the stock is in oversold territory, enhancing its appeal as a buying opportunity.

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.