Buy or sell stocks: Domestic equity indexes Sensex and Nifty 50 ended flat in the previous trade, dragged down by heavy losses in HDFC Bank, though some big names like Reliance Industries, State Bank of India (SBI) and Larsen & Tunro got support on the back of broadly positive global indexes.
The NSE Nifty 50 closed at 24,323.85, up 0.09 per cent for the day, on gains in energy stocks, hitting its fourth record high this week, while the Sensex fell 53 points, or 0.07 per cent, to close at 79,996.60.
The 30-stock BSE index recorded a record bull run of 10,000 points in 58 trading sessions this week, hitting an all-time high of 80,000 points. The blue-chip Nifty 50 again closed at an all-time high on Friday, July 5, climbing for the fifth consecutive week, its longest consecutive gain this year.
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Stocks to buy
In terms of stocks that investors can buy, Vaishali Parekh recommended the following three technical picks.
1. Apollo Hospitals:
Buy Apollo Hospitals at ₹6,065. Target price of ₹6,550 gives room for upside of 8.05 percent. Stop Loss: ₹5,800 at 4.37 percent
“The stock is showing a bottom formation pattern on the daily chart and is finding support near the crucial 200-day moving average at 5,690 and the pullback above the crucial 50-day moving average at 6,015 is strengthening our expectations of further upside,” said Prabhudas Lilladhar, an expert at Apollo Hospitals.
“The RSI is currently in a good position and is indicating a trend reversal, signalling strength and is likely to see a positive move in the coming days. As the risk-reward profile is good currently, I would recommend buying the stock with an upside target of 6,550 while keeping the stop loss at 5,800,” Vaishali Parekh said.
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2. Concord
Buy CONCOR at ₹1,062. Target price of ₹1,207 gives upside potential of 13.90 percent. Stop Loss: 5.95 percent at ₹1,005.
According to Parekh, the stock has experienced a brief correction from the recent peak at 154 zone, after which it has gained support near the 1,015 zone and is seeing a decent pullback above the crucial 50 EMA level at 1,044, improving the bias and is expected to see further gains in the coming days.
“The RSI has reached a very attractive zone, indicating a trend reversal, which will be a signal to buy. As the chart pattern is very attractive, I suggest buying the stock keeping the stop loss at 1,005 and aiming for an upside target of 1,207,” said expert Prabhudas Lilladhar.
3. TVS Motor Company
Buy TVS Motor Company at ₹2,412. Target price of ₹2,750 gives upside potential of 13.90 percent. Stop Loss: 5.55 percent at ₹2,280.
The stock price experienced a brief correction from the peak level at 2,520 zone and then gained support near the 2,300 zone and witnessed a pullback with a positive candlestick formation on the daily chart, forming a higher low pattern, improving the bias to expect further upside.
“The RSI has cooled significantly from the overbought levels and is in a good position to reverse the trend, signaling a buy. As the chart formation is good, I suggest buying the stock with an upside target of 2,750 while keeping the stop loss at 2,280,” Vaishali Parekh said.
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Where are the Sensex and Nifty 50 heading?
Nifty has been steadily rising from 23,350 levels and is hitting new highs. The underlying tone is very bullish and is expected to rise further towards the next targets of 24,500 and 24,900 levels in the coming days. The psychological short-term support is at the 24,000 zone below which the bias may become a bit weaker.
After opening with a gap up, the Sensex remained range bound and saw active participation and positive movement in the broader market, closing in the reckoning zone near 80000. According to Parekh, support for the day is likely to be at 79,600/24,150 levels, while resistance is likely to be at 80,500/24,450 levels.
Bank Nifty index signalled an improved trend in anticipation of further gains for the index to touch new highs with target levels of 53,500 and 55,100 in sight in the coming days. BankX was stuck around 60,500 in the second session with major banking stocks like HDFC Bank shedding gains.
The index levels are likely to see short-term support held near 59,500 levels and may rise further to 61,500-62,000 zone on the upside.Experts expect the daily range for Bank Nifty to be 52,600-53,700 levels, with Bankex support at 59,800 and resistance at 61,000 levels.
Disclaimer: The views and recommendations provided in this analysis are those of the individual analysts or brokerage firms and not those of Mint. As market conditions change rapidly and individual circumstances may differ, investors are strongly advised to consult with a qualified professional before making any investment decisions.
