Indian shares pared most of their losses on Monday. The 30-share BSE Sensex closed 86.6 points lower at 54,395. On similar lines, the broader NSE Nifty dipped 4.60 points, or 0.03 per cent, to end at 16,216, weighed down by robust selling in IT stocks following lacklustre Q1 results from IT giant TCS.
The tech index fell 3.1%, dragged down by Tata Consultancy Services (TCS), shares of which fell as much as 4.9% to hit a three-week low, after the company missed quarterly profit estimates by a wide margin on Friday, as employee-related expenses soared.
The rupee ended at a record closing low against the dollar on Monday as continued foreign portfolio outflows from domestic stockmarkets and a broadly stronger greenback weighed on the currency despite intermittent dollar selling intervention. The short term uptrend status of Nifty remains intact and the market is taking a temporary halt before showing further upmove in the near term. Hence, the current range movement within 16100-16250 levels is likely to extend for the next session. A sustainable move above 16300 could be viewed as a strengthening of upside momentum, "said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Stocks to buy today as recommended by analysts:
Rajesh Bhosale, Technical Analyst, Angel One
Coal India: Buy COAL INDIA, stop loss 187.8, target 204
Divis Lab: Buy DIVIS LAB, stop loss 3,633, target 3,980
Mehul Kothari, AVP-Technical Research at Anand Rathi
Tata Power: Buy Tata Power, stop loss 213, target 235
Berger Paints: Buy bergerpaint, stop loss 580, target 620.
Anuj Gupta, Vice President-Research at IIFL Securities
Adani Wilmar: Buy Adani Wilmar Ltd, stop loss 585, target 665
Axis Bank: Buy Axis Bank, stop loss 645, target 740
Rohit Singre, AVP-Technical Research at Bonanza Portfolio
Dr Reddy's: Buy Dr Reddy, target 4,700, stop loss 4,400
Granules India: Buy granules, target 315, stop loss 283