Nagaraj Shetti Recommends Ather Energy and RBL Bank as Investment Opportunities

Market Report - March 19, 2024

Domestic Market Performance

The Indian stock market witnessed a decline on Thursday, with the Nifty 50 and Sensex falling by 2.24% and 2.16%, respectively. The Nifty 50 closed at 23,245.95, while the Sensex closed at 75,043.94. The decline was largely driven by HDFC Bank, which plummeted by 8.66% after its part-time chairman, Atanu Chakraborty, resigned due to conflicts over "values and ethics."

Global Market Impact

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Rising crude oil prices and a more aggressive stance from the Federal Reserve fueled a global market selloff, with Asian stocks falling by 2.3%. The Federal Reserve kept interest rates steady but adopted a hawkish tone, highlighting the risks associated with the Iran war that have led to increased energy prices. Elevated US interest rates make emerging markets like India less appealing to foreign investors.

Market Views

According to Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities, the Nifty 50 has formed a new lower top at 23,862 levels. The current weakness is expected to form a double bottom or a slight lower bottom around the support of 22,900 levels in the near term. Immediate resistance is at 23,400.

Technical Picks

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Nagaraj Shetti recommends the following stocks to buy in the short-term:

• Ather Energy Ltd: Buy at ₹757, Target at ₹815, Stoploss at ₹725, Timeframe 1 week. The stock price has witnessed a sharp upmove in the last few sessions and is currently placed at the edge of a decisive breakout of an important resistance band around ₹755-760 levels.
• RBL Bank Ltd: Sell at ₹293.65, Target at ₹277, Stoploss at ₹303, Timeframe 1 week. The stock price has declined on Thursday and is placed at the edge of a breakdown of a key support at ₹290 levels. A decline below ₹290-288 levels is likely to open sharp weakness in the near term.