Indian stock market: The Indian benchmark indices, Sensex and Nifty 50, closed Friday’s session with marginal movements following the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.5% for the seventh consecutive policy meeting. This decision marked the continuation of stability in the domestic equity market, which oBSErved its third consecutive week of gains, largely influenced by the performance of financial sector stocks.
“The first rate cut may happen only in October, provided that headline inflation evolves in line with the forecast. The quantum of rate cut is likely to be limited to about 50 bps during FY2024-25.With a significant moderation in the interbank liquidity surplus over the last fiscal year, the RBI will also continue to manage liquidity more actively through this fiscal year, in line with the policy stance. On the inflation front, the MPC voiced caution about climate shocks domestically and globally, which could instigate food price rises. Likewise, the prevalent geopolitical tensions may disrupt global supply chains, leading to commodity price spikes, especially in crude oil. Given the same, we believe the MPC may defer the interest rate cut action until Oct ’24,” said Vikram Kasat, Head – Advisory at Prabhudas Lilladher.
During Friday’s trading session, the Sensex experienced moderate gains, reaching a new all-time high of 74,248 in response to the RBI MPC announcement. Conversely, although the Nifty 50 closed flat, it concluded the week on a positive trajectory, setting a new record high.
The Nifty 50 concluded the session at 22,513.70, experiencing a marginal decline of 0.95 points or 0%, on Friday. Meanwhile, the 30-share BSE Sensex marked a modest gain, closing up by 20.59 points or 0.03% at the level of 74,248.22.
Technical stock picks by Prabhudas Lilladher’s Vaishali Parekh –
Nykaa: Buy at ₹169 | Target Price: ₹195 | Stop Loss: ₹158
NYKAA has witnessed a decent correction from 195 to 145 level and a double bottom formation has been made to make a recovery showing potential and strength to gain further in the coming days. The RSI has recently shown atrend reversal signaling a buy and hence is supporting our view of a positive bias. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 195 keeping a stop loss of 158.
NBCC: Buy at ₹135 | Target Price: ₹159 | Stop Loss: ₹124
The stock has gained strength after the consolidation witnessed and a decent pullback to move past the significant 50 EMA level of 119 has improved the bias to anticipate for further rise in the coming days. The RSI is on the rise and has already indicated a trend reversal with much upside potential to carry on with the positive move further ahead. We suggest to buy the stock for an upside target of 159 keeping the stop loss of 124.
Disclaimer: 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.
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Published: 07 Apr 2024, 04:59 PM IST