Stocks to buy: Nagaraj Shetti recommends IDFC First Bank, Central Bank stocks to buy

Stock market today: The domestic benchmark indices Sensex and Nifty 50 saw gains on Thursday, fueled by growing optimism over the US-India trade deal. The markets were further strengthened by new foreign fund inflows and increased IT purchases during the trading session. On Thursday, the Nifty 50 was just 0.7% shy of its all-time high, hitting an intraday peak of 26,099.70. The Sensex touched a high of 85,272.40, which is about 0.8% below its all-time high. Last September, the Nifty 50 had set a record high of 26,277.35, while the Sensex had also hit its high of 85,978.25 during that time frame. Analysts credited the surge to news of an upcoming meeting between United States President Donald Trump and Prime Minister Narendra Modi, in addition to hopes of a US-India trade deal. However, the major benchmark indices saw some gain booking where the Nifty 50 index was trading at 25,955 at 14:14 IST. 65, while the BSE Sensex was trading at 84,765.47. Market Views – Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities Nifty 50 Nifty 50 opened with a bang on Thursday after a holiday and continued its gains in the early to mid session. After opening with a sharp upside gap of 189 points, the market moved into a range-bound action with positive bias after the opening. After breaking out of the crucial barrier at 25,500 levels last week, Nifty 50 has continuously moved up, signaling a decisive reversal at the bottom. The underlying trend of Nifty 50 remains positive and the next upside targets to watch is around 26,300. Immediate support is placed at 25,900. Technical picks: Stocks to buy in the short term Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short term – IDFC First Bank Ltd, and Central Bank of India. Buy IDFC First Bank at ₹79, Target at ₹85, Stoploss at ₹76, Time Frame 1 week. The mid-cap bank stock recently saw a decisive breakout from key downside resistance around ₹73 and is currently trading higher. We see a bullish pattern like higher tops and bottoms on the daily chart. Volume expanded during upmoves and RSI shows positive indication. Buy Central Bank of India at ₹39.50, target at ₹42, stop loss at ₹38, Time frame 1 week. The share price has seen a sharp breakout of triangle type pattern on the weekly chart this week and is now trading higher. The hurdle of weekly 10/20 period EMA was also surpassed on the upside. Volume pattern and daily/weekly RSI show positive indication for the near term. Disclaimer: The views and recommendations given in this article are those of individual analysts. It does not represent the views of Munt. We advise investors to check with certified experts before making any investment decisions.