Top 3 Long-Term Stocks to Buy: Mehul Kothari of Anand Rathi's Expert Picks for April 15, 2025

Market Surge Fueled by Tariff Pause: Key Stocks to Watch Long-Term

The Indian stock market experienced a remarkable upswing recently, ignited by U.S. President Donald Trump’s announcement of a 90-day hiatus on newly imposed tariffs affecting trade partners. This news sent the Nifty 50 index soaring, opening at 22,695 and closing at 22,828, marking an impressive intraday gain of 429 points. Similarly, the BSE Sensex opened at 74,835 and closed at 75,157, achieving a staggering 1310-point rally during Friday’s trading session. The Bank Nifty also witnessed robust activity, starting at 50,634 and finishing at 50,995, reflecting a gain of over 750 points.

Stock Market Sentiment and Outlook

Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, shares a cautiously optimistic outlook on the Indian stock market’s potential. According to Kothari, the Nifty 50 index displays signs of strength following a significant rebound on Dalal Street. However, he highlights that the index faces a critical resistance level around 23,000, which must be breached for a confirmed bullish trend.

Kothari commented on the recent market fluctuations, noting, "Last week commenced with a steep drop on what was termed ‘Black Monday,’ where the Nifty recorded a substantial gap down of nearly 1,146 points. Yet, the bulls regained momentum as the week progressed, allowing the index to recover approximately 1,100 points. Despite this recovery, the Nifty concluded the week with a slight decline of -0.33%. The daily charts suggest caution as it remains below the 21, 50, 100, and 200 DEMA levels, although the weekly chart indicates a rebound from the 100 EMA, hinting at underlying strength. Additionally, the RSI on the weekly timeframe showcases a hidden bullish divergence, signaling potential positive sessions ahead."

Key Levels to Monitor

For traders, the levels to watch on April 15, 2025, include the 22,900–22,750 zone, which is critical according to Camarilla pivots. Kothari emphasizes that while the Nifty faces resistance at 23,000, it has established vital support at 22,500.

Recommended Long-Term Stocks

As for stocks to consider for long-term investment, Kothari from Anand Rathi has highlighted three promising options:

ITC Limited: Recommended buy at ₹420 to ₹422, with a target of ₹460 and a stop-loss at ₹410. The stock shows strong bullish momentum, breaking key resistance levels and indicating potential for further gains, especially if sustained above the ₹420 mark.
Clean Science and Tech: Suggested buy at ₹1175 to ₹1185, targeting ₹1350, with a stop-loss at ₹1120. The stock is showing a bullish pattern on the daily chart, with increasing buyer interest and price compression hinting at an impending breakout.
Shree Renuka Sugars: Buy suggestion at ₹26 to ₹27, aiming for a target of ₹35, with a stop-loss at ₹24. Early indicators of reversal near the ₹25 to ₹26 support zone, combined with a bullish RSI divergence, suggest potential upward momentum.

Final Thoughts

Investors should maintain disciplined risk management and stay informed about broader market trends. Trading inherently involves risks, so conducting thorough research is essential. Keep an eye on these stocks as the market evolves, and happy trading!