Stock Market Update: Rajesh Palviya Recommends Three Stocks to Buy, Hold, and Accumulate

On Friday, the Indian stock market saw a decline, with the Nifty 50 and Sensex facing sell-offs as investors grew cautious due to rising tensions in the Middle East and increased foreign outflows. At 9:55 AM IST, the Sensex was flat at 82,522.54, while the Nifty 50 remained steady at 25,241.40 points.

According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the Nifty 50’s sharp 2.1% drop yesterday was mainly due to heavy selling by foreign institutional investors (FIIs), not just concerns about the Middle East. Over the last three days, FIIs sold ₹30,614 crores in the cash market. The upcoming Q2 results next week are expected to impact market performance, with leading banks likely to recover.

Market Insights by Rajesh Palviya, SVP – Technical and Derivatives Research at Axis Securities

After reaching an all-time high of 26,277 on September 27, the Nifty 50 has seen a price correction of over 1,000 points. Currently, it has broken below an important trendline, indicating a possible short-term trend reversal. The index closed below the 20-day simple moving average (SMA) of 25,508, further confirming this reversal.

The short-term outlook appears bearish, with the index potentially dropping to levels between 24,800 and 24,500. A “Bearish Gap” formed on October 3 at 25,739-25,639 will act as resistance for any future price rallies.

Recommended Stocks

Rajesh Palviya has suggested investors buy, hold, and accumulate the following stocks:

Ajanta Pharma Ltd (Current Market Price: ₹3,340)

The stock is in a strong uptrend, consistently forming higher tops and bottoms. It is positioned above its 20, 50, 100, and 200-day SMAs, all of which are rising. The RSI indicators are also showing strength across all time frames. Investors should consider accumulating this stock, with a target price of ₹3,400-3,500 and support levels at ₹3,150-3,085.

Tata Chemicals Ltd (Current Market Price: ₹1,131)

This stock has recently gained significantly, confirming a breakout at the ₹1,100 level, which indicates a trend reversal. The breakout was supported by high trading volumes. Tata Chemicals is trading above its key SMAs, with the Bollinger Bands indicating a buy signal. Investors should look to buy and accumulate, aiming for a target of ₹1,200-1,320, with support at ₹1,085-1,040.

JSW Steel Ltd (Current Market Price: ₹1,040)

JSW Steel shows a strong uptrend, having reached an all-time high of ₹1,060, signaling bullish sentiment. It is above all key SMAs, confirming a bullish trend, with Bollinger Bands also indicating a buy. Investors should consider accumulating this stock, targeting ₹1,100-1,150, with support at ₹1,000-970.