Stocks to buy: The Indian stock market extended losses for the third consecutive session on Wednesday, 9 September, as rising oil prices due to escalating US-Iran tensions continued to weigh on sentiment. In three sessions, the Sensex crashed 2.3%, while the Nifty 50 shed 2%.
On Thursday, 10 September, the domestic market remained in the consolidation mode as crude oil prices traded near $101 per barrel, raising concerns over its impact on the Indian economy and corporate profitability.
The Nifty is now near 23,400. According to Amol Athawale, VP - Technical Research at Kotak Securities, on both daily and intraday charts, the market continues to maintain a lower high-lower low formation, while on daily charts, it has formed a bearish candle, indicating further weakness from the current levels.
"For day traders, 23,550 would remain immediate resistance. As long as the index trades below it, weak sentiment may persist. On the downside, the index could decline to 23,300-23,200. On the flip side, a sustained move above 23,550 could extend the bounce towards 23,650-23,700," said Athawale.
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks: