Analyst Picks TECHM, SAIL, PNB Amidst Market Turmoil and Tariff Fears

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AuthorKavya Nair|Published at:
Analyst Picks TECHM, SAIL, PNB Amidst Market Turmoil and Tariff Fears
Overview

Indian equities closed with marginal gains Friday, retreating from intraday highs amid investor caution. Analyst Raja Venkatraman of NeoTrader highlighted three stock picks: Tech Mahindra (TECHM), Steel Authority of India Limited (SAIL), and Punjab National Bank (PNB), outlining buy levels, stop losses, and targets. The market faces headwinds from anticipated US tariffs on key goods and ongoing H-1B visa concerns, which battered mid and small-cap stocks.

Market Retreats Despite Early Gains

Indian stock markets concluded Friday's session with tepid gains, reversing earlier advances as investor sentiment turned cautious. The benchmark Sensex and Nifty 50 indices closed up 0.23% and 0.11% respectively, but remained well below their intraday peaks. This retreat occurred against a backdrop of growing concerns over potential US trade tariffs and persistent H-1B visa uncertainties impacting the IT sector.

Analyst Recommendations Amid Volatility

Raja Venkatraman, co-founder of NeoTrader, has identified three specific stock recommendations for traders. Tech Mahindra (TECHM) is suggested for a buy above ₹1675, with a stop loss at ₹1625 and a target of ₹1798. The stock has shown resilience after consolidating, with technical indicators suggesting a potential upside. Steel Authority of India Limited (SAIL) is another pick, with a buy recommendation above ₹150.50, a stop loss at ₹146, and a target of ₹161, supported by a V-shaped revival on charts. Punjab National Bank (PNB) is also recommended for purchase above ₹133, stop loss ₹128, and target ₹143, showing strength after consolidating near cloud supports.

Tariff Fears Batter Mid and Small Caps

The broader market sentiment was significantly dented by news that US President Donald Trump plans to impose major tariffs on goods, including branded drugs and heavy trucks, effective October 1. This development disproportionately affected mid-cap and small-cap stocks, which suffered the most significant declines on Friday. The pharmaceutical sector, already facing trade tax threats, is now under increased pressure. The overall market saw 1,770 shares advancing against 2,111 declining, indicating weak market breadth.

Technical Indicators Signal Caution

Technically, the Heikin Ashi weekly chart confirms a downward shift following two weeks of gains, with a "red small-bodied candle" signaling market indecision. Analysts warn that the market may be at an inflection point. The Nifty is currently testing its crucial support zone between 25,500 and 25,600. Breaking past 25,800 is projected to be difficult, with 25,400 also at risk as the market enters a week laden with Q3 earnings from major corporations like Reliance Industries, ICICI Bank, and HDFC Bank.

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