Sensex and Nifty 50 Hit by FII Selling! Rajesh Palviya of Axis Securities Recommends 3 Stocks to Buy, Hold, and Accumulate Today

The Indian stock market had a tough day on Friday, with the Sensex and Nifty 50 seeing heavy selling pressure. October has been marked by significant selling from foreign investors.

On Friday, the Nifty 50 index opened 0.34% lower, dropping 84 points to 24,664.95. Meanwhile, the Sensex started the day at 80,749.26, down 257 points or 0.32%.

Experts suggest that the Indian market is under pressure due to foreign institutional investors (FIIs) pulling out. However, there’s hope for improvement in the coming weeks, with many expecting a recovery.

What’s Causing the Market Decline?

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained that the market is currently seeing FIIs selling and domestic institutional investors (DIIs) buying. While there might be a short rebound over the next few days, it might not last because market sentiment is still weak. Investors are being advised to wait for stability before making any major decisions. Large-cap stocks, especially private banks impacted by FII selling, could be good options to accumulate gradually.

Stock Market Advice by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities

In the past three weeks, the Nifty 50 index has seen some significant profit booking, closing around the 24,750 level. This level is now acting as a “multiple support zone” for the market. If the index falls below this level, we could see further declines toward 24,300-24,000. On the other hand, if there’s a short-term rally, it could be an opportunity for traders to exit around 25,000-25,300.

Right now, the Nifty 50 is trading below both its 20-day and 50-day Simple Moving Averages (SMA), indicating a bearish trend. However, any rise towards the 25,000 mark might provide a good exit point for short-term traders.

Stock Picks by Rajesh Palviya:

1. HEG Ltd (CMP: ₹2,567)

HEG is currently close to breaking through a resistance level at 2,650. If it does, the stock could see significant gains. Over the short and medium term, HEG has been forming higher highs and lows, indicating a bullish trend. It’s also trading above its 20, 50, 100, and 200-day moving averages, which reinforces the positive outlook. With its RSI (Relative Strength Index) also in positive territory, the stock appears strong across daily, weekly, and monthly timeframes.

Investors are advised to buy, hold, and accumulate HEG with a target price of ₹2,730-2,900. The downside support zone is between ₹2,470 and ₹2,390.

2. Stock #2

This stock has been showing an upward trend, forming a series of higher highs and higher lows on the weekly chart. It recently regained its 100-day SMA at 367 and has since bounced back, signaling a positive outlook. The RSI for both daily and weekly charts is strong, further confirming the bullish trend. Increased trading volumes also show growing investor interest.

Investors are advised to buy, hold, and accumulate this stock with a target price of ₹465-485 and a downside support level between ₹405-390.

3. Stock #3

Similarly, this stock is moving within an upward-sloping channel, creating higher highs and lows. Like the second stock, it has recently regained its 100-day SMA at 367, showing strength. The positive RSI readings, combined with increased trading volumes, point to a bullish trend.

Investors are advised to buy, hold, and accumulate this stock with a target price of ₹395-415 and a downside support level between ₹330-316.

Conclusion

While the market is facing pressure from FII selling, there are still opportunities for long-term investors. By focusing on fundamentally strong stocks, especially in large-cap private banks, investors can navigate the current uncertainty and look forward to potential gains.