Nilesh Jain, Head of Technical and Derivative Research at Centrum Finverse, has offered his technical insights on the Indian stock market, including specific recommendations for several prominent stocks and sectors. Jain cautions that the benchmark Nifty50 index faces significant resistance around the 24,000 level, suggesting a potential slip towards 23,600-23,500 if it remains below this threshold.
Tata Steel: Buy on Decline Strategy
Regarding Tata Steel Ltd, Jain believes the stock is currently establishing a base. While some selling pressure might occur, he does not anticipate a significant correction from its present position. He advises a 'buy on decline' strategy, recommending a stop-loss at Rs 180 for long positions. As long as the stock trades above Rs 180, there's a strong likelihood of it gradually advancing towards the Rs 195-200 range.
Hindustan Copper: Short-Term Rangebound, Long-Term Strength
For Hindustan Copper Ltd, Jain projects a range-bound movement in the short term, with an expected trading band between Rs 480 on the lower side and Rs 550 on the upper side. He anticipates continued consolidation with a slightly negative bias over the immediate one to two months. However, he highlights a strong broader structure for the stock over a six-to-eight-month timeframe, with potential for it to move towards Rs 580-600 and beyond.
Lloyds Engineering Works: Strong Positional Outlook
Jain views Lloyds Engineering Works Ltd as strong from a positional investment perspective. He recommends maintaining a trailing stop-loss at Rs 78 and holding positions for potential targets of Rs 95-100.
Top Picks in Pharma and Broking Sectors
In the pharmaceutical sector, Jain advises investors to consider adding Wockhardt Ltd, Glenmark Pharmaceuticals Ltd, and Dr Reddy's Laboratories Ltd during market declines.
For the broking space, he highlighted several companies, including Nuvama Wealth Management Ltd, Central Depository Services India Ltd (CDSL), Motilal Oswal Financial Services Ltd, and BSE Ltd, as notable picks.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.