Vinay Rajani of HDFC Sec Suggests Viyash Scientific, Federal Bank Shares to Buy in Near-Term

Why It Matters

The recommendations give investors actionable entry points amid heightened risk, while the broader technical view signals where the Nifty may find support or break lower, influencing portfolio allocation across Indian market segments.

Key Takeaways

• Sensex fell 1.11% to 73,422 amid Middle East tensions
• Nifty 50 slipped 1.22% to 23,081, testing 23,000 support
• Rajani recommends buying Viyash Scientific (~$3.08) with target $3.43
• Federal Bank (~$3.69) flagged as buy; target $3.92
• Broader indices (Mid‑cap, Small‑cap) expected to outperform Nifty

Pulse Analysis

The Indian market’s sharp retreat on June 8 reflects a confluence of geopolitical risk and a broader technology correction that has rippled through Asian equities. Crude oil surged past $96 a barrel, stoking inflation concerns for oil‑importing economies like India, while tech giants faced steep valuation cuts in the U.S., prompting investors to flee risk assets. This backdrop amplified volatility, pushing the Sensex and Nifty into loss territory and resetting short‑term sentiment for traders and fund managers alike.

Technical analysts at HDFC Securities see the Nifty caught in a bearish down‑trend, with price hovering around the 23,150‑23,000 support band that aligns with a 61.8% Fibonacci retracement and a gap‑support level. A decisive break above the 23,560 resistance could trigger a bullish reversal toward 23,800, but a close below 23,000 would likely deepen the decline toward 22,800. Meanwhile, broader indices—Nifty Next 50, mid‑cap, small‑cap and micro‑cap—are displaying relative strength, suggesting they may absorb capital as investors seek better risk‑adjusted returns.

Against this technical canvas, Rajani singled out Viyash Scientific and Federal Bank as near‑term buying opportunities. Viyash Scientific has broken out of a cup‑and‑handle formation, trading near ₹256 (~$3.08) with a stop‑loss at ₹240 (~$2.89) and a target of ₹285 (~$3.43). Federal Bank, priced around ₹306 (~$3.69), sits above key moving averages and has breached a double‑top resistance, with a stop‑loss at ₹295 (~$3.55) and a target of ₹325 (~$3.92). Both stocks combine bullish chart patterns with sector tailwinds—Viyash in a niche scientific market and Federal Bank benefiting from private‑bank outperformance—offering disciplined traders a way to capture upside while managing downside risk.