Indian equity benchmarks closed lower on Wednesday, 14 October, as the Nifty 50 fell 0.44 percent. Amid this market consolidation, analyst Nagaraj Shetti recommended buying Sagility at ₹45.60 and Rain Industries at ₹236. He said, "The alternative candle pattern of bull and bear continued in the market for the fifth."
Stock market today: Indian equity benchmarks closed lower on Wednesday, 14 October, as rising oil prices and sustained foreign investor outflows dampened sentiment following the previous session’s rally. Investors also assessed corporate earnings and awaited key US inflation data.
The Nifty 50 fell 0.44% to close at 22,622.70, while the Sensex declined 0.34% to 72,781.89. Eight of the 16 major sectors ended in the red, while the broader market also weakened, with small-cap and mid-cap indices falling 0.3% and 0.1%, respectively.
The decline followed a strong rebound on Tuesday, when the Nifty and Sensex gained around 1.6% each, led by IT stocks after HCLTech reported quarterly profit that exceeded expectations.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, has recommended buying Sagility at ₹45.60, with a target price of ₹49.50 and a stop-loss at ₹43.50. The trade has a timeframe of two to three weeks.
He has also recommended buying Rain Industries at ₹236, with a target of ₹255 and a stop-loss at ₹223, for a similar investment horizon of two to three weeks.
Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
The alternative candle pattern of bull and bear continued in the market for the fifth consecutive session on Wednesday and Nifty 50 closed the day lower by 99 points. A small negative candle was formed on the daily chart that signals consolidation movement in the market after a sharp upmove seen on Tuesday. The bearish pattern like lower tops and bottoms is intact on the daily chart. A decisive close above 22,800 is likely to negate this bearish setup.
Nifty 50 is currently placed at the crucial resistance around 22,700-22,800 levels and a decisive break out of this hurdle could open further short covering in the market towards 23,100-23,200 levels. Any weakness from here could find support around 22,300 levels.
Stocks to buy
Buy Sagility at ₹45.60, Target at ₹49.50, Stoploss at ₹43.50, Timeframe 2-3 weeks
After showing a consolidation movement in the last few weeks, the stock price has witnessed sharp bounce back on Wednesday and closed higher. Currently, placed at the edge of breaking above the crucial hurdle of down sloping trend line at ₹46 levels. Volume has started to expand during upside breakout in the stock price and daily RSI shows positive indication.
Buy Rain Industries at ₹236, Target at ₹255, Stoploss at ₹223, Timeframe 2-3 weeks
After moving into a larger consolidation pattern in the last couple of months, the stock price has started to witness a decisive break out of the pattern so far this week. We observe bullish patterns like consistent higher lows over the period. Current breakout was accompanied by rise in volume and daily/weekly RSI shows positive indication.