ONGC to Swiggy - Vinay Rajani of HDFC Sec suggests these 3 stocks to buy in the near-term

Mint

2 days ago

Stock market today: India's stock market benchmarks gained ground following a lackluster opening on Monday, buoyed by increases in IT and financial sectors after experiencing two consecutive sessions of decline due to a worsening conflict between Israel and Iran.
As of 12:37 IST, the Nifty 50 increased by 0.85% to reach 24,929 . 20, while the Sensex climbed 0.77% to hit 81,752.79.
Following the widespread sell-off in the previous two sessions, the markets seem poised for a short-term rebound; however, geopolitical developments will continue to be a significant factor, according to market analysts. Over the weekend, fresh attacks were exchanged between Israel and Iran, raising concerns about broader instability in the oil-rich area. Crude oil prices rose amid worries about supply disruptions, which poses a risk for India, a nation heavily dependent on oil imports.
Vinay Rajani of HDFC Securities recommends Oil and Natural Gas Corporation Ltd (ONGC), Swiggy Ltd, and Macrotech Developers Ltd (Lodha).
The Nifty 50 continued its consolidation for the fourth consecutive week, experiencing a weekly fall of 1.14%. The Nifty 50 closed below its 20-day EMA (24,791), with the next key support at the 50-day EMA, currently positioned at 24,386. The index has maintained its level above the swing low of 24,462, indicating a continuation of the consolidation phase within the 24,500 and 25,200 range for the fourth straight week.
A notable development during the week was the Nifty 50 finding resistance at the swing high made in October 2024, concluding the week with a bearish 'Dark Cloud Cover' candlestick
pattern on the weekly chart. This bearish pattern will be confirmed if the Nifty breaks below the candle's low in the upcoming sessions without breaching the high.
A close below 24462 could lead to a further slide towards the unfilled gap of 24378-24164 (formed on May 12, 2025), and a closing below 24,164 would signal a bearish trend reversal positionally.
The Bank Nifty has formed a bearish 'Engulfing' pattern on its weekly chart. The negative implication of this pattern will be validated if the index breaks its candle's low of 55,149. Should this occur, the Bank Nifty could slide down to its next support level of 53,500. On the upside, the 56,000-56,200 band is expected to offer resistance.
The Midcap100 and Microcap250 indices are still holding their uptrend on positional charts, representing resilience in the broader market. However, they also need to protect their levels aboven last week's lows to sustain their upward momentum.
Adding to the cautious sentiment, Brent crude has seen a significant price jump, while the Indian rupee has experienced healthy depreciation against the dollar. The combination of higher crude prices and a weaker rupee could collectively contribute to weak Indian equity market sentiments going forward.
In summary, while the broader market indices are holding up, both Nifty and Bank Nifty are showing bearish technical patterns and consolidating within key ranges. Critical support levels need to be defended to prevent a potential bearish trend reversal, and external factors like crude oil prices and currency depreciation could add further pressure.
Nifty Strategy : Despite a bullish primary trend, Nifty 50 is currently undergoing short-term consolidation. Traders holding long positions should maintain a stop-loss at 24,462. A breach below this level could lead to a further decline towards 24,164 support, and a sustainable close below 24,164 would positionally reverse the bullish trend. Conversely, a close above 25,000 would negate the possibility of a downtrend.
Vinay Rajani of HDFC Securities recommends these three stocks in the near term - Oil and Natural Gas Corporation Ltd (ONGC), Swiggy Ltd, and Macrotech Developers Ltd (Lodha).
ONGC share price has broken out from multi-week consolidation with rising volumes. Stock price has taken out multi top resistance of 252 and has been sustaining above it. Stock is placed above all key moving averages, indicating a bullish trend on all time frames. Indicators and oscillators have been showing strength on the daily and weekly time frames.
Swiggy share price has surpassed the crucial resistance of 20 DEMA with healthy volumes. Daily RSI has been sustaining above 50, which shows the strength in the stock. Daily MACD has shown positive crossover on signal as well as on equilibrium line. Stock has started forming higher top and higher bottom formation on the daily chart. Stock price has taken out previous swing high resistance.
Macrotech Developers share price has broken out from the descending triangle pattern on the weekly chart. Stock is placed above key moving averages, indicating bullish trend on all time frames. Realty sector index has been outperforming for last couple of weeks. Monthly RSI has given bullish crossover, which indicates strength in the stocks. Volumes have risen along with the recent price rise. Stock has been forming higher tops and higher bottoms on the daily.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.