Stocks to BUY: Experts have advised investors to be cautious and patient for long term gains…
highlights
- If you are planning to buy some strong shares before the budget, then experts have suggested top 5 shares for you.
- ET NOW In conversation with Swadesh, the veteran market expert has given strategies to investors regarding stocks of different sectors like metal, energy and banking.
- Investors have been advised to place bets on these shares before the budget.
Broader markets also remained under pressure last week as midcap and smallcap indices fell sharply in the range of 0.74 per cent to 1.74 per cent, reflecting rising risk aversion and cautious trading across segments. Meanwhile, stock market experts have advised investors to exercise short-term caution and patience for long-term gains.
Expert’s prediction on Nifty’s movement
According to Nandish Shah, Deputy Vice President, HDFC Securities, Nifty is now trading below its 20-day and 50-day EMAs, pointing towards a positional downtrend. He said that any recovery attempt will face stiff resistance in the zone of 25,950-26,000.
Nilesh Jain, Head Technical and Derivatives Research Analyst (Equity Research), Centrum Broking, said Nifty attempted a pullback, but it faced stiff resistance near the 50-DMA located around the 25,960 level. The next important support lies at the 100-DMA near 25,540 levels, and as long as the index remains above this zone, a pullback towards 25,900 levels cannot be ruled out.
Which stock to buy?
Titan: Should you buy shares for the long term?
Gorakshkar said that Titan is trading near its 52-week high, which is supported by strong demand from the festive and wedding seasons. Although recent business updates show consumer spending remains healthy, he believes stocks are already too high.
He cited Titan’s focus on natural diamond jewelery as a key factor, which offers better margins compared to lab-grown diamonds. However, given the current valuations, he advised existing investors to remain invested. He said that new buyers should wait for more clarity from the upcoming results.
IEX: What should investors do?
Regarding IEX, Gorakshkar said recent concerns about market coupling have largely been absorbed into the stock’s trading. If the new mechanism is implemented, there may be some pressure on margins. He emphasized that IEX is debt-free, generates strong cash flow, and the company’s margins are around 90 percent.
According to him, the downside risk seems limited from the current levels, making the stock suitable for long-term investors, although short-term volatility may continue until there is policy clarity.
ITC: Buy or sell now?
On FMCG stock ITC, Gorakshkar said the stock is likely to remain under pressure till the Union Budget as there are concerns among investors over the impact of higher excise duty on cigarette sales. He identified a strong support zone between Rs 330 and Rs 340, which could provide value-buying opportunities for long-term investors. However, he advised short-term traders to avoid entering the stock at this stage.
Reliance Industries: Strategy to buy on dips
Despite the recent volatility and CLSA removing Reliance from its model portfolio, Gorakshkar said the company’s fundamentals remain strong. He termed Rs 1,500 as an important support level and suggested that any movement near this level should be seen as a buying opportunity for long-term investors.
He said better performance is also expected in the December quarter due to better refining margins and stable oil and gas outlook.
IndiGO: Wait for Q3 results or invest?
Gorakshkar took a cautious stance on InterGlobe Aviation (IndiGo), noting that the airline is likely to suffer losses in the near term and has already reduced its guidance. Although lower crude oil prices provide some relief, the impact of flight cuts will be closely watched over the next few quarters.
For investors with a higher risk appetite, he suggested considering Indigo around the Rs 5,000 level for the long-term. Other investors were advised to wait for clear signs of recovery before investing money in the stock.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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