Mehta Equities Predicts Short-Term Winners: Chalet Hotels, Adani Ports, and Motilal Oswal in Focus

Market Volatility: A Day After Rally, Investors Take a Pause

Indian stock markets saw some softening on Tuesday after a significant surge on Monday, driven by a ceasefire and easing cross-border tensions. The Nifty 50 dipped by 1.31% to 24,597.35, while the Sensex fell 1.53% to 81,172.71. Analysts anticipate a period of consolidation following the impressive nearly 4% rally on Monday.

Short-Term Gains or Institutional Support?

Experts point out that the Monday surge, while substantial (a 916-point increase in Nifty 50), wasn’t fueled by institutional buying. The total buying from Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) amounted to only ₹2,694 crores. This suggests that individual investors and retail traders played a bigger role in the recent gains. Low institutional activity could potentially hinder the ongoing rally, according to some experts.

Riyank Arora’s Market Outlook

Nifty 50

Riyank Arora, Technical Analyst at Mehta Equities Ltd., highlights the Nifty 50’s breakout above the 24,800-24,850 resistance band and a strong bullish candle formation on the daily chart. He points to a Relative Strength Index (RSI 14) of 67, indicating strong upward momentum, and a Rate of Change (ROC) above its neutral point, suggesting increasing strength. Arora anticipates the Nifty 50 moving towards the 25,200–25,300 zone. He recommends buying Nifty 50 May Futures on a pullback near 24,900–24,950, with a stop loss at 24,750 and upside targets of 25,200–25,300.

Bank Nifty

The Bank Nifty also surpassed its recent hurdle at 55,000, supported by increased trading volumes. Arora sees the next major resistance in the 55,600–55,700 range, where profit-booking might occur. He points out the key support zone at 54,900. With an RSI (14) of 62, suggesting a healthy trend continuation in the banking sector, Arora expects the Bank Nifty to extend its upmove in the coming sessions. He recommends buying Bank Nifty May Futures around 55,400–55,600, with a stop loss at 55,000 and upside targets of 55,900–56,100.

Chalet Hotels, Adani Ports, and Motilal Oswal: Short-Term Picks

Riyank Arora recommends three stocks for short-term investment:

• Chalet Hotels Ltd (Buy): Current Market Price (CMP): ₹870, Stop Loss: ₹850, Target: ₹925
• Adani Ports and Special Economic Zone Ltd (Buy): CMP: ₹1,362, Stop Loss: ₹1,290, Target: ₹1,500
• Motilal Oswal Financial Services Ltd (Buy): CMP: ₹736, Stop Loss: ₹700, Target: ₹780

Arora cites technical indicators and increased trading volume to support his bullish outlook on these stocks.