The Nifty 50, a prominent stock market index in India, achieved a significant milestone by surpassing the 22,000 mark in the morning trade on January 15. This feat was attributed to a bullish market sentiment driven by robust fundamentals and better-than-expected earnings reports from certain IT majors for the December quarter.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the ongoing market rally, initially fueled by momentum, is now receiving additional support from fundamentals. He highlighted the notable rebound in large-cap IT stocks, indicating that an underperforming segment can surprise on the upside following positive management commentary and signs of a sector turnaround.
Vijayakumar emphasized that the Nifty has broken out on the upside from a consolidation range, signaling potential for further upward movement. He identified Reliance Industries Limited (RIL) as a key driver of the rally, driven by substantial delivery-based buying on news of the commissioning of the Dhirubhai Ambani Green Energy project in the second half of 2024.
According to Vijayakumar, RIL, large-cap IT, and banking majors are likely to contribute significantly to the bullish trend in the near term. Amidst the positive market sentiment, experts recommend considering stocks that are both technically and fundamentally sound. Here are insights into 12 recommended stocks for the next three to four weeks:
**Gaurav Bissa, VP, InCred Equities:**
1. **State Bank of India (SBI):**
– Target Price: ₹665
– Stop Loss: ₹615
– Rationale: Nifty PSU Bank index’s multiyear breakout and a retested bullish wedge breakout on the daily charts suggest potential for an upward move in PSU banking names.
2. **Reliance Industries (RIL):**
– Target Price: ₹3,000
– Stop Loss: ₹2,625
– Rationale: RIL’s fresh breakout from a rising channel pattern on the daily charts, with a potential for strong outperformance against Nifty.
3. **Nazara Technologies:**
– Target Price: ₹1,030
– Stop Loss: ₹890
– Rationale: Nazara’s strong uptrend, cup and handle pattern breakout on weekly charts, and bullish indicators like RSI and MACD.
**Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers:**
4. **YES Bank:**
– Target Price: ₹31
– Stop Loss: ₹21
– Rationale: YES Bank’s clean breakout on the weekly timeframe, along with Stochastics reversing, making it an attractive option.
5. **KRBL:**
– Target Price: ₹420
– Stop Loss: ₹359
– Rationale: KRBL’s consolidation breakout at 200 DEMA, violation of the bear-trendline, and bullish confirmation from daily stochastics.
6. **Tanla Platforms:**
– Target Price: ₹1,350
– Stop Loss: ₹1,099
– Rationale: Tanla Platforms’ consolidation breakout, bullish MACD crossover on weekly charts, and signs of further bullishness.
**Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher:**
7. **Mahindra Holidays & Resorts India:**
– Target Price: ₹460
– Stop Loss: ₹390
– Rationale: Strong recovery, crossing key moving averages, and a favorable RSI indicating further upward potential.
8. **Exide Industries:**
– Target Price: ₹375
– Stop Loss: ₹320
– Rationale: Strong uptrend, breakout above ₹332, and RSI indicating a trend reversal, suggesting additional upside potential.
9. **Indian Renewable Energy Development Agency (IREDA):**
– Target Price: ₹136
– Stop Loss: ₹98
– Rationale: IREDA’s post-IPO momentum, support near ₹96, and bullish indicators like RSI signaling a second round of momentum.
**Axis Securities Recommendations:**
– **Union Bank of India, HCL Technologies, and Oil & Natural Gas Corporation (ONGC):**
– Buying ranges, target prices, and stop-loss levels provided for each stock based on technical analysis.
These recommendations are based on a combination of technical and fundamental analyses. Investors are advised to conduct their own research and due diligence before making investment decisions, considering the dynamic nature of the stock market. The market outlook appears positive, and these stock picks align with the prevailing trend and potential opportunities in various sectors.
