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Nagraj Shetti's stock recommendations: The key benchmark indices of the Indian stock market continue to trade weak on the fourth successive session this week. However, some signs of recovery became visible when the Nifty 50 index bounced back from the intraday low of 25,726 and touched an intraday high of 25,863. Bulls may have a sigh of relief as the 50-stock index is trading green and sustaining above the 50-DEMA support placed at 25,750 levels. The Nifty Bank Index also staged a strong pullback from the intraday low of 58,712 and regained the psychological 59,000 levels.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes the Indian stock market sentiment is weak, as the Nifty 50 index is facing a hurdle at the 25,850 to 25,900 levels. He suggested investors remain cautious and recommended buying Birlasoft shares. However, he advised investors to sell Fortis Healthcare shares.

Speaking on the outlook of the Nifty 50 index, Nagraj Shetti of HDFC Securities, said, "Nifty continued to show weakness for the fourth consecutive session so far on Thursday and is currently trading lower by 35 points. The negative chart pattern, characterised by lower tops and bottoms, remains intact according to the daily chart, and the present weakness could be in line with the formation of a new lower bottom, which is yet to be established in the short term. The next lower support to be watched is around the 25650-25600 band. Any bounce back from here could find a strong hurdle around 25850-25900 levels."

As mentioned above, Nagraj Shetti of HDFC Securities has recommended these two buy-or-sell stocks: Birlasoft and Fortis Healthcare.

After witnessing a sharp upside move in the early part of December, the IT stock (Birla Soft Ltd) shifted into a range-bound action with positive bias. Currently placed at the edge of the breakout of ₹435 to ₹440 levels. The stock price is currently above the support of the 10-day and 200-day EMAs. The overall bullish chart pattern signals more upside for the stock price in the near term.

The stock price has been in a downtrend over the last few months. Bearish lower tops and bottoms are in effect, as indicated by the daily timeframe chart. The recent bounce back from the support of the 200-day EMA has ended, and the stock price has reversed down after forming a lower top. The overall negative chart pattern suggests further weakness in the stock price in the near term.

The HDFC Securities expert said that the above short-term recommendations are for the next one to two weeks.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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