Nagaraj Shetti of HDFC Securities Recommends These 2 Stocks Amid Market Fall
Stock Market Today: Market Decline Continues for Fourth Straight Session
Nagaraj Shetti: The Indian stock market faced another challenging session on Monday, February 10, with the Nifty 50 and Sensex continuing their downward trend for the fourth consecutive day. The Sensex dropped more than 650 points, while the Nifty 50 neared the crucial 23,340 mark during intraday trading.
As of 14:11 IST, the Nifty 50 had declined 0.93% to 23,340.90, while the Sensex dropped 0.85% to 77,187.39. Market analysts attribute this slump to a combination of global and domestic factors, including:
- Trump’s Trade Tariff Threats – Uncertainty around Donald Trump’s potential tariff policies on Indian exports.
- High Valuations – Despite the recent corrections, stock valuations remain elevated.
- Weak Earnings Reports – Several companies have reported disappointing earnings, impacting investor sentiment.
- Foreign Institutional Investors (FIIs) Outflow – Continuous selling by FIIs due to global market concerns.
- Rupee Depreciation – A weaker rupee has further dampened investor confidence.
According to Dr. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, Indian equities are under pressure primarily due to foreign factors rather than domestic concerns. Even with RBI’s rate cuts and a growth-oriented Union Budget, foreign investors have yet to return in significant numbers.
However, optimism remains for a potential trade agreement between India and the US during an upcoming meeting between Prime Minister Narendra Modi and Donald Trump. Additionally, the ₹16 lakh crore capital expenditure plan announced in the Union Budget could serve as a long-term growth catalyst, even if markets haven’t fully recognized its impact yet.
Nagaraj Shetti’s Market View on Nifty 50
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that the Nifty 50 has now entered crucial support levels between 23,300 and 23,400. However, there are no clear signs of reversal yet. If the market attempts an intraday pullback, it could face resistance around the 23,500 level.
Given the ongoing uncertainty, Shetti has identified two key stock picks for traders—one for buying and one for selling—based on technical indicators.
Stock Recommendations by Nagaraj Shetti
1. Buy: Castrol India Ltd
- Current Price: ₹209.70
- Target Price: ₹220
- Stop-Loss: ₹203
- Timeframe: 1 week
Castrol India has shown strong technical support at ₹203 and is expected to gain momentum toward the ₹220 level in the coming week. The stock has maintained an upward trend despite broader market weakness, making it an attractive buy.
2. Sell: LIC Housing Finance Ltd
- Current Price: ₹566.80
- Target Price: ₹535
- Stop-Loss: ₹585
- Timeframe: 1 week
On the other hand, LIC Housing Finance is exhibiting bearish signals on the charts. If selling pressure continues, the stock could decline further toward ₹535, making it a suitable short-selling opportunity for traders.
Financial Ratios for Castrol India & LIC Housing Finance
| Metric | Castrol India Ltd | LIC Housing Finance Ltd |
|---|---|---|
| Market Cap | ₹20,345 Cr | ₹33,450 Cr |
| P/E Ratio | 19.8 | 9.5 |
| Dividend Yield | 3.50% | 1.20% |
| 52-Week High | ₹220.60 | ₹615.90 |
| 52-Week Low | ₹172.30 | ₹445.00 |
| Book Value | ₹44.10 | ₹405.80 |
| ROE (Return on Equity) | 45.2% | 13.6% |
Conclusion: Navigating Market Uncertainty
The ongoing volatility in the Indian stock market has left investors cautious. With global factors such as US trade policies, FIIs selling pressure, and the depreciating rupee playing a major role, traders must adopt a strategic approach to stock selection.
Nagaraj Shetti’s recommendations provide a balanced approach, offering a buy call on Castrol India for potential gains and a sell call on LIC Housing Finance to hedge against market downturns.
For traders and investors, closely monitoring key support and resistance levels in the coming days will be essential for making informed decisions. As always, risk management with strict stop-losses is crucial in navigating uncertain markets.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.