HDFC Securities Analyst Suggests Buying Action Construction Equipment and Moil Shares

Stock Market Today: Cautious Note on Monday Amid US-Iran Uncertainty and Global Oil Price Surge

The domestic benchmark indices, Nifty 50 and Sensex, opened on a cautious and slightly negative note on Monday, April 20, as investor sentiment weakened amid rising uncertainty over US-Iran negotiations and mixed signals from leadership on both sides. The benchmark indices mirrored the subdued mood in early trade, with Sensex climbing 314.84 points (0.40%) to 78,808.38, while the Nifty 50 jumped 98.85 points (0.42%) to 24,455.85 at 12:25 am.

Uncertainty around the progress of peace talks has unsettled markets. Although a temporary ceasefire had initially raised hopes of a diplomatic resolution, recent conflicting statements have raised doubts about its sustainability. This lack of clarity has made investors cautious, with concerns of a potential escalation weighing on sentiment. Furthermore, global oil prices surged sharply amid fears of supply disruptions. Brent crude jumped 4.72% to USD 94.65 per barrel, while WTI crude rose 5.51% to USD 88.47, intensifying inflation concerns and putting additional strain on equity valuations.

Market analysts have been monitoring the situation closely, with Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, providing insights into the market trends. The Nifty 50 has rallied over 10% from its recent swing low of 22,182, decisively surpassing key moving average resistances at the 10-, 20-, and 50-DEMA levels. The index now eyes its next major hurdle: the 200 DEMA near 24,800.

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On the downside, the 24,000–24,100 band offers short-term support, with positional support at 23,555—an ideal level for accumulating long positions. Smaller caps have led the charge, with the Nifty Smallcap 100 and Microcap 250 surging 17% and 20%, respectively. However, this sharp run has pushed market breadth into extreme overbought territory on short-term frames—95% of NSE 500 stocks now trade above their 20 DMA, a historically rare signal.

Recommendation: Traders can book profits in smaller stocks at higher levels this week. Meanwhile, Nifty Energy, BSE Power, and Metal indices remain robust on charts and poised to sustain the broader bullish trend.

2 Stocks to Buy in the Near-Term

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Action Construction Equipment

• Current Price: ₹919
• Target: ₹875
• Stop-loss: ₹1,000

Action Construction Equipment's share price recently surpassed 50 DEMA resistance and has been sustaining above that. The stock price has also broken out from a downward sloping trend line on the daily chart. Construction and infra stocks have recently got bullish momentum after a long period. Indicators and oscillators have turned bullish on the short-term charts.

Moil

• Current Price: ₹325
• Target: ₹365
• Stop-loss: ₹310

Moil's share price has started forming higher tops and higher bottoms on the daily charts. After surpassing 50 DEMA, the stock is now hovering near its 200 DEMA. The stock price formed a bullish "Hammer" candlestick pattern on the monthly charts in the month of March 2026. Indicators and oscillators have been showing strength in this uptrend on the daily chart.