Shares to buy: Prashanth Tapse of Mehta Equities suggests these four stocks to buy in short to medium term | Stock Market News

Stock market today: The Indian equity indices staged a recovery during Friday’s trading session after touching five-month lows earlier in the week, buoyed by encouraging employment data from the US. The domestic benchmark indices, Nifty 50 and Sensex, experienced a notable rally. The Sensex climbed above the 78,000 mark, while the Nifty 50 surpassed 23,600. By 12:50 IST, the Nifty 50 had gained 333.55 points, or 1.43%, reaching 23,683.45, while the Sensex was up 1,024.73 points, or 1.30%, at 78,134.08.

Adani Group shares experienced considerable pressure in early trading but later rebounded, rising by as much as 6%. The group’s market value decreased by approximately $27 billion following the indictment of Gautam Adani by US prosecutors for alleged misconduct on Thursday. The group maintains that these accusations are baseless.

Experts noted that the market’s trajectory is unlikely to be heavily influenced by Adani Group stocks, as there are only two of them in the benchmark Nifty 50, and they carry minimal weight.

According to a Bloomberg report, Asian equities rose on Friday, with semiconductor companies experiencing a rally as investors moved past their initial concerns regarding Nvidia Corp.’s revenue outlook. Shares in Australia, Japan, and South Korea saw gains, with the MSCI Asia Pacific index climbing as much as 0.7%. This increase was driven by a rebound in technology stocks in the region following Thursday’s selloff, bolstered by Nvidia’s gains in the U.S.

However, shares in Hong Kong and China declined, extending losses into midday, amid ongoing concerns about the nation’s economic outlook and the growing possibility of stricter tariffs on U.S. exports under President-elect Donald Trump.

Mid-market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

The Big Question: Can Nifty 50 end the week on a strong footing?

Nifty 50 comfortably opens above the dotted lines but that said spotlight shifts to the counting of votes of Maharashtra and Jharkhand assembly elections which are scheduled for November 23.

Our call of the day suggests after a higher open Nifty is likely to trade volatile as keeping market participants on their toes this Friday would be theme that the Adani Group is experiencing its worst performance since the Hindenburg controversy was published in January 2023. The street will now closely monitor boutique investment firm GQG Partners which was among the initial investors to acquire a stake in the Adani Group following the Hindenburg scandal in 2023.

Market outlook

Caution shall continue to be the buzzword for the market

Nifty 50

The Nifty 50 has trendline support at the 23,000 mark, which should act as a strong psychological support level for the benchmark index. With the index hovering around its 200-period moving average and showing some bounce from lower levels, we expect it to move towards the 23,500 and 23,800 levels. A strict stop-loss should be set at the 23,000 mark on a closing basis for all long positions on Nifty 50.

Bank Nifty

Bank Nifty is hovering around its 200-period moving average and finding some support at that level. We believe the index is likely to scale higher, aiming for 51,200 and 51,500 if it successfully crosses and sustains above the 51,000 mark. A strict stop-loss is advised near 49,500 for all long positions, as this level is slightly below its 200-SMA and should act as a major support.

Shares to buy for short to medium term

Prashanth Tapse recommends buying these four stocks in the short to medium term – Apollo Hospitals Enterprise Ltd, Grasim Industries Ltd, HDFC Life Insurance Company Ltd, and ITC Ltd.

Apollo Hospital Buy | CMP: 6858.00 | SL: 6590.00 | Target: 7250.00 |Time period 1-2 Months

Apollo Hospital has recently witnessed a breakout above its prior swing high, supported by a notable surge in trading volumes, which underscores strong bullish sentiment. This technical move confirms the stock’s potential to continue its upward trajectory, making it attractive for momentum traders. The breakout is further supported by robust market participation, suggesting sustainability of the current trend.

Grasim Industries Buy | CMP: 2566.45 | SL: 2480.00 | Target: 2700 |Time period 1-2 Months

Grasim Industries has rebounded decisively from the critical support level of 2500, indicating the presence of strong demand at lower levels. This recovery is accompanied by improving momentum, signaling a reversal from oversold conditions. The stock’s ability to sustain gains above this support suggests the potential for a continued upward move toward the target of 2700.00.

HDFC Life Buy | CMP: 685.45 | SL: 665.00 | Target: 720.00 |Time period 1-2 Months

HDFC Life is showing signs of a reversal after touching the lower Bollinger Band, a key technical support zone often indicative of oversold conditions. This bounce suggests a renewed buying interest at lower levels, with a strong probability of the stock regaining higher levels in the near term. The stock’s technical indicators align with a short-term bullish outlook.

ITC Buy | CMP: 458.00 | SL: 445.00 | Target: 490 |Time period 2-3 Months

ITC has successfully bounced from its 200-day moving average, a significant long-term support level, signaling a potential reversal in its recent downtrend. This recovery, coupled with improving technical indicators, highlights growing bullish momentum, positioning the stock for a near-term rally. The 200-day moving average’s role as a reliable pivot adds conviction to this setup.

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.