Nagaraj Shetti recommends Ola Electric Mobility, PNB shares to buy or sell

Stock market today: Indian stocks declined on Thursday, following the implementation of an additional 25% punitive U.S. tariffs on imports, with analysts cautioning about short-term market pressures.

The Nifty 50 dropped by 0.48% to 24,594 . 60 points, while the BSE Sensex fell by 0.54% to 80,344.39 as of 12:35 IST. Both the Nifty 50 and Sensex experienced approximately a 1% decline each on Tuesday, marking their steepest single-day percentage fall in three months, prior to the activation of the U.S. tariffs. The domestic markets were closed on Wednesday due to a local holiday.

Analysts indicate that markets are confronting considerable challenges after the U.S. imposed an extra 25% tariff on Indian products in response to New Delhis acquisition of Russian oil, bringing the total duties to 50%.

Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities

The downside momentum continued in the market on Thursday and the Nifty 50 currently trading lower by 105 points amidst minor recovery note. The crucial support of previous opening upside gap of 18th August has been filled completely at 24,673 and Nifty 50 presently trading below the gap support, which is not a good sign.

The underlying trend of Nifty 50 remains weak and a decisive move below 24,600 could open next lower support of around 24,350 in the near term. Immediate resistance to be watched at 24,700.

Nagaraj Shetti of HDFC Securities recommends these two stocks to buy or sell in the short-term - Ola Electric Mobility Ltd, and Punjab National Bank (PNB).

Buy Ola Electric Mobility at ₹53.60, Target at ₹59, Stoploss of ₹50, Timeframe 1-2 weeks.

After showing minor downward correction recently, the stock price bounced back sharply in the last few sessions. We observe formation of higher bottom at ₹46.60 and the stock price is now advancing towards the bullish higher top formation. Volume pattern and RSI shows positive indication.

Sell PNB at ₹101.95, Target at ₹96, Stoploss of ₹105, Timeframe 1 week.

After showing a reasonable bounce back in the last few weeks, the PSU Banking stock (PNB) has started to decline from the highs this week. We observe a formation of bearish larger degree lower top formation at ₹108 recently, after a series of bullish higher tops and bottoms in the past. The stock price has broken below the crucial support of 200day EMA at ₹104. The volume has expanded during downside breakout in the stock price and the daily 14 period RSI shows negative indication.

Frontline indices, the Sensex and the Nifty 50, ended with significant losses on Thursday, August 28, extending their decline for the second consecutive session amid concerns that the 50 per cent US tariffs on Indian goods could dent the country’s economic growth by up to 1 per cent if they persist for a longer period.

The Sensex closed with a loss of 706 points, or 0.87 per cent, at 80,080.57, while the Nifty 50 settled 211 points, or 0.85 per cent, lower at 24,500.90. The BSE Midcap and Smallcap indices crashed by 1.09 per cent and 0.96 per cent, respectively.

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