Ruchit Jain Recommends Buying Hindustan Copper and Mahanagar Gas Stocks This Week

Ruchit Jain, Lead Research Analyst at 5paisa, suggests two stocks for potential investment opportunities in the current market scenario.

Market Overview:

After a recent correction, the domestic market witnessed an upturn due to positive cues from the surge in Asian markets, particularly led by China. China’s market regulator’s decision to halt lending restricted shares contributed to stability in its stock markets. The S&P BSE Sensex gained 1.76%, closing at 71,941.57, and the Nifty 50 saw a 1.8% rise, ending at 21,737.60.

Ruchit Jain’s Analysis:

Ruchit Jain analyzes the recent correction in the market and mentions that heavyweights in the IT and private sector banking sectors dragged the benchmark lower, with Nifty 50 closing around 21,350 with a loss of over a percent. The Nifty 50 had registered a new all-time high of 22,124 in mid-January but corrected sharply in the last few weeks due to selling by foreign institutional investors (FIIs). Despite the correction, the longer-term trend remains firm.

Stock Recommendations:

1. Hindustan Copper Ltd:
   • The stock has been forming a ‘Higher Top Higher Bottom’ structure, indicating an uptrend.
   • Recent consolidation appears to be a time-wise correction within the uptrend.
   • The ’20 DEMA’ has acted as a support, suggesting a potential resumption of the uptrend.
   • Short-term traders can consider buying the stock in the range of ₹281-278 with potential targets around ₹305 and ₹320.
   • The stop loss for long positions should be placed below ₹257.
2. Mahanagar Gas Ltd:
   • The stock has outperformed in the recent corrective phase, maintaining a positive trend.
   • The RSI oscillator indicates a continuation of momentum, with decent volumes in the up move.
   • Traders are advised to consider buying the stock in the range of ₹1,375-1,365.
   • Potential targets are around ₹1,480 and ₹1,575.
   • The suggested stop loss for long positions is below ₹1,260.

Conclusion:

Ruchit Jain advises traders to stay cautious from a trading perspective and consider lightening up long positions on up moves. Monitoring new positions in the derivatives segment is crucial, and traders should be attentive to the data for informed decision-making.