Rajesh Palviya of Axis Securities recommends 3 stocks to buy this week
In spite of the ongoing legal battle between the US-based Hindenburg and the Adani Group, Indian markets finished Friday on a positive note, rising by 243.65 points or 1.38% to settle at 17,854.05 levels on the NIFTY 50 and 909.64 points or 1.52% to conclude at 60,841.88 levels on the Sensex. Despite the fact that the Nifty Mid Cap and Nifty Small Cap underperformed the main indices by 0.18% and 0.35%, respectively, most sectoral indices ended the day in the green. The top gainer was Nifty PSU Bank, up 3.07%, followed by Nifty Fin Service and Nifty Bank, both up 2.36% and 2.04%. The major underperformers, though, were Nifty Energy down 1.03% and Nifty Pharma down 1%.
The Adani controversy caused significant instability over the week, but the Nifty Index climbed by 0.53% and the Sensex gained by about 1.8%, while the BSE Midcap Index declined by 0.5% and the BSE SmallCap Index grew by 0.5%. At the conclusion of its two-day policy meeting last week, the US central bank declared an uptick to the benchmark lending rate of one-quarter point, bringing it to a target range of 4.50-4.75 percent in the last week, and during the same time period, FPIs were net sellers in the previous five trading sessions while DIIs were net buyers. Analysts anticipate that Dalal Street may, nevertheless, remain focused on the macro movements influenced by global cues, the Budget release, and the RBI’s rate decision.
Nifty outlook for this week
Rajesh Palviya, VP – Technical and Derivatives Research, Axis Securities said on the weekly chart, the index has formed a “Piercing Bullish” candlestick pattern which indicates a potential short-term reversal on the index. The chart pattern suggests that if Nifty crosses and sustains above the 18000 level it would witness buying, leading the index towards 18300-18500 levels.
However, if the index breaks below the 17700 level, it would witness selling, taking the index towards 17500-17300. For the week, we expect Nifty to trade in the range of 18500-17300 with mixed bias. The weekly strength indicator RSI is marginally below its reference line, while the momentum oscillator Stochastic has turned positive, indicating positive bias.
Bank Nifty outlook for this week
Rajesh Palviya said on the weekly chart, the index has formed a Piercing Bullish candlestick pattern indicating a potential short-term reversal on the index. The chart pattern suggests that if Bank Nifty crosses and sustains above the 41700 level it would witness buying, which would lead the index towards 42000-42200 levels.
However, if the index breaks below the 41300 level, it would witness selling which would take the index towards 41000-40800. For the week, we expect Bank Nifty to trade in the range of 42200-40800 with mixed bias. The weekly strength indicator RSI is marginally below its reference line, while the momentum oscillator Stochastic has turned positive, indicating positive bias.
Rajesh Palviya stock recommendations for the coming week
1. Eicher Motors: Buy at ₹3320, stop loss ₹3250, target price ₹3450
2. Canfinhome: Buy at ₹574, stop loss ₹550, target price ₹625
3. Bharti Airtel: Buy at ₹790, stop loss ₹760, target price ₹840
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
