Stocks to buy or sell: Osho Krishan of Angel One suggests buying Jubilant FoodWorks, L&T Technology next week

Stock Market News: The domestic benchmark indices, Nifty 50 and Sensex, will remain closed today (Friday, November 15), in observance of Guru Nanak Jayanti, resulting in a three-day pause.

On Thursday, the Nifty 50 and Sensex fell for the sixth consecutive day, reaching a new multi-month low. The decline in the indices was driven by various factors, such as relatively poor Q2 earnings, ongoing foreign fund outflows, and increasing domestic inflation, both retail and wholesale.

The Sensex ended at 77,580.31 points, down 110.64 points or 0.14% on Thursday, while the Nifty 50 concluded at 23,532.70 points, down 26.35 points or 0.11%.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market is currently experiencing a correction; since reaching its recent peak, the primary indices, Nifty 50 and Sensex, have declined by approximately 10%. The market sentiment has been affected by disappointing Q2FY25 results and ongoing foreign fund withdrawals. Conversely, the rise in domestic CPI inflation to a 14-month high of 6.2%, along with a strengthening dollar index and increasing US 10-year yield, indicates that volatility is likely to persist in the near term.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The Bulls appear to have signaled a complete surrender, which has led to a widespread sell-off, leading to a notable correction of over 10% from the all-time highs of the benchmark. The Nifty 50 index has now precisely tested the long-term 200-day simple moving average (200-DSMA), a critical support level that often serves as a pivotal point. With the current oversold conditions, it is vital to closely monitor the market’s response in the upcoming sessions. The recent breakdown of key levels and the strong momentum favoring bearish trends cannot be ignored. Traders must exercise caution and avoid rushing into bullish trades at this time. A disciplined approach is essential to navigate this market effectively.

From a technical perspective, we are currently seeing immediate resistance around 23,800, followed by 24,000. On the other hand, if there is further price weakness, we could see a move towards the 50-week exponential moving average (50-WEMA) at 23,200, which also aligns with the 61.8% retracement level from the rally that began on the day of the election results. While determining an exact bottom can be challenging, this range presents a valuable opportunity to gradually accumulate quality stocks. Midcap and small-cap stocks are currently facing selling pressure, and it may be prudent for traders to exercise caution when considering investments in these segments. Instead of attempting to buy at the bottom, focusing on more stable opportunities could be beneficial during this time of volatility. With a long weekend on the horizon, it’s also a good idea to approach overnight trading with restraint.

Stocks To Buy next week – Osho Krishan

On stocks to buy next week, Osho Krishan recommended two stocks – Jubilant FoodWorks Ltd and L&T Technology Services Ltd.

Jubilant FoodWorks Ltd

Jubilant FoodWorks, following a healthy correction from its recent peak of 715, has demonstrated a remarkable recovery by moving above all its major EMAs on the daily chart. This positive shift has been bolstered by strong trading volumes, effectively transitioning the previously oversold indicators into a more favourable position. Moreover, the MACD indicator has showcased a positive crossover from the negative territory, reinforcing the likelihood of an ongoing uptrend. This indicates a promising outlook for the stock moving forward.

Hence, we recommend buying Jubilant FoodWorks around 620-610, keeping a stop loss of 590 for a potential Target of 660-680.

L&T Technology Services Ltd

L&T Technology has been firmly hovering near the cluster of its EMAs on the daily time frame chart, indicating resilience towards the extreme sell-off in the broader markets. Also, the counter has witnessed some buying emergence recently and has surged above the 50% retracement zone of the previous rally. The MACD indicator showcased a positive crossover from the lower terrain, insisting a bullish stance in the comparable period.

Hence, we recommend to BUY L&T Technology around 5,150-5,120, keeping a stop loss of 4940 for a potential Target of 5,460-5,500.

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. The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings.