Shares to buy: Prashanth Tapse of Mehta Equities suggests these three stocks to buy or accumulate in the short term
Market Update:
The Indian stock market continued its sustained decline on Friday, following the global market’s lead, as investors worried about the potential impact of a 10% tariff on Chinese goods. The 30-share BSE benchmark Sensex fell by 1,379.69 points to reach 73,185.99, while the Nifty 50 dropped by 309.30 points to hit 22,235.75.
Expert Insights:
We caught up with Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, to gain insights on the current market situation and his top picks for the short term.
Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities
Several factors are contributing to the current market volatility, including concerns about the Trump administration’s tariff war and continuous selling pressure from Foreign Institutional Investors (FIIs). It’s essential to remain cautious and focus on selecting high-quality stocks with strong fundamentals to navigate the uncertain market conditions.
Top Three Stocks to Buy or Accumulate in the Short Term:
- ITC Ltd.
- Buy Range: ₹390-395
- Stop Loss: ₹370
- Target: ₹440
ITC has been trading near its major support zone on the monthly time frame charts, which has historically acted as a strong accumulation zone. As the stock has witnessed steady declines, long-term buyers are likely to step in at these levels, making it a favorable buying opportunity.
- Polycab India Ltd.
- CMP: ₹4,668
- Stop Loss: ₹4,270
- Target: ₹5,400
Polycab has touched a strong support zone on daily time frame charts and is showing good price action around these levels. The 4800-4820 zone has historically acted as a demand zone, where buyers have stepped in to push the stock higher. The stock’s volume profile suggests accumulation, and any dip towards 4800-4820 should be seen as a buying opportunity.
- Imagicaaworld Entertainment Ltd.
- Buy Range: 60-61
- Stop Loss: 57
- Target: 70
Imagicaa has recently touched a major AVWAP support zone on the monthly charts, signaling that long-term buyers are active in this region. This support is crucial, as it suggests the stock is forming a strong base before the next move higher. The risk-reward ratio is highly favorable, with the downside risk limited to the stop loss at 57, while the potential upside remains significant towards 70 and above.
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 decisions.
In conclusion, Prashanth Tapse suggests these three stocks for the short term, with a focus on ITC, Polycab India, and Imagicaaworld Entertainment. These stocks offer a favorable risk-reward ratio, with potential for significant upside while managing downside risks effectively.
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