Stocks to buy or sell: Dharmesh Shah of ICICI Securities suggests buying HAL, JK Cement today — 6 January 2025

Stocks to buy or sell: The domestic benchmark indices, Nifty 50 and Sensex, began the week on a slightly positive note on Monday, with a nearly flat opening, though the overall sentiment remains under pressure.

The Nifty 50 index started at 24,045.80 points, rising by 41.05 points or 0.17%, while Sensex also opened higher, gaining 58.54 points or 0.07% to reach 79,281.65 points.

Analysts indicated that the earnings season this week could bring some volatility, but hopes are tempered due to lackluster earnings similar to those in Q2. Market attention will mainly focus on Trump's policy choices and the upcoming Union Budget.

The Indian stock market indices closed lower after Friday's market session as investors booked their profits amid a strengthening dollar and weak global cues. The Nifty 50 index closed 0.76 per cent lower at 24,004.75 points, compared to 24,188.65 points at the previous market close.

The BSE Sensex index closed 0.90 per cent lower at 79,223.11 points on Friday, compared to 79,943.71 points at the previous market close. 

Vinod Nair, Head of Research at Geojit Financial Services, noted that this year, 2025, is expected to face multiple challenges like elevated valuations, reduced liquidity, and slower earnings growth. Yet considering all these factors, the Indian stock market remains a lookout for investors.

“However, the stock market remains a viable investment opportunity, underpinned by the robust performance of the economy,” said Nair.

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

• Equity benchmarks started the CY25 on a buoyant note as monthly auto sales numbers boosted the market sentiment. Nifty gained 0.75% to settle the week at 24005. Broader market outperformed by gaining 1.5%. The weekly price action formed a small bull candle with shadows on either side, indicating positive bias amid elevated volatility. 

• On expected lines, index managed to hold the long-term rising trend line coincided with 200 days EMA, despite depreciating rupee and consistent FII’s sell-off, highlighting robust price structure that has been further validated by a positive divergence on the daily RSI. The overall price structure makes us reiterate our positive stance with a target of 24400 for coming weeks. Further, better-than-expected earnings would fuel the next leg of up move.
• Meanwhile, we expect volatility to remain elevated onset of Q3FY25 earning season, new policy measures from Trump government and Union Budget expectation wherein strong support is placed at 23300 which we expect to hold as it is confluence of 61.80% retracement of Jun-Sept rally (21281-26277) coincided with 52 weeks EMA placed at 23350. Hence, buying on dips would be the prudent strategy to adopt in quality stocks
• On the broader market front, the ratio chart of Nifty 500 / Nifty 100 has been inching northward after breaking out from 6 months consolidation, suggesting acceleration in broader market outperformance. Further, the significant improvement has been observed in market breadth as currently 49% stock of Nifty 500 universe are trading above 50 days EMA compared to last week reading of 36%, that augurs well for durability of ongoing up move.

Stocks To Buy This Week - Dharmesh Shah

1. Hindustan Aeronautics Ltd. (HAL): Buy at ₹4,120 - ₹4,210; Target at ₹4,685; Stop Loss at ₹3,914.

2. JK Cement Ltd. (JKCEMENT): Buy at ₹4,660 - ₹4,742; Target at ₹5,330; Stop Loss at ₹4,428.

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.