Buy or sell: Dharmesh Shah recommends these two stocks to buy this week
Positive global cues led to widespread buying in the domestic market, and analysts noted that the pro-growth Interim Budget also encouraged investors to buy quality stocks following the recent correction.
The Nifty 50 ended 156.35 points, or 0.72%, higher at 21,853.80, and the Sensex ended 440.33 points, or 0.61%, higher at 72,085.63, on Friday.
“Exciting news! Mint is now on WhatsApp Channels ???? Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
“The government sticking to its fiscal glide path boosts sentiment; the market hits a record high. The Nifty 50 reaches an intra-day high of 22,127, while the Midcap Index also sets a new record. Sensex and Nifty 50 are close in the green, but off highs, Nifty 50 gives up 22,000,” said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
Also Read: Stocks to Buy: GAIL, BHEL among top bets; here’s why
On the domestic front this week, the six-member MPC meeting led by the reserve bank governor is set to take place this week from February 6–8, 2024. According to reports the Reserve Bank of India would maintain its benchmark interest rate at 6.50%. The spotlight will remain on the Q3 quarterly results season, as per analysts. This week, the following companies that will release their results are Apollo Hospital, Bharati Airtel, Britannia, Power Grid, Nestle, Lupin, Grasim, Power Finance, and Tata Power.
Market Outlook For This Week
The index snapped a two-week breather and formed a higher high-low on the weekly chart, indicating a rejuvenation of upward momentum. Going ahead, we expect Nifty 50 to resolve higher and gradually head towards 22,200 in the coming week. In the process, volatility would prevail amid the progression of the earning season and global development. Thus, dips should be capitalised as incremental buying opportunities as immediate support is placed at 21,400, advised Dharmesh Shah, Assistant Vice President (AVP), ICICI Securities.
We expect Bank Nifty to undergo base formation in the broader range of 47,500–44,800 above the 52-week EMA, wherein public sector undertakings (PSU) banks and Housing Finance companies will relatively outperform. On the sectoral front, Oil & Gas, Auto, and Power would endure their outperformance, while the Nifty IT index is resuming its uptrend after a two-week breather, said Shah.
Stock recommendations by Dharmesh Shah
On stocks to buy this week, Dharmesh Shah recommended two stocks:
Buy NTPC Ltd in the range of ₹325–333 for the target of ₹370 with a stop loss of ₹305.
Buy Coforge Ltd in the range of ₹6,400–6,460 for the target of ₹7,380 with a stop loss of ₹6,034.
Also Read: Indian stock market all set for an election rally. Know why
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 25/01/2024 (preceding date) or have no other financial interest and do not have any material conflict of interest.
The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Download The Mint News App to get Daily Market Updates.
Published: 05 Feb 2024, 08:38 AM IST
