The Nifty 50, a leading stock market index in India, surpassed the significant 22,000 mark in the morning trade on January 15, 2024. This milestone was achieved amid a bullish market sentiment driven by robust fundamentals and better-than-expected earnings reports from IT majors in the December quarter.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the ongoing market rally, initially fueled by momentum, is now gaining support from fundamentals. The surge in large-cap IT stocks, driven by positive management commentary, indicates a potential turnaround in the sector.
Vijayakumar pointed out that the Nifty has broken out on the upside from a consolidation range, signaling potential further upward movement. He also emphasized the role of Reliance Industries Limited (RIL) in driving the rally, particularly due to significant buying on news of the commissioning of the Dhirubhai Ambani Green Energy project in the second half of 2024.
Key recommendations from experts for stocks to consider buying in the next three to four weeks include:
**1. State Bank of India (SBI):**
– Target Price: ₹665
– Stop Loss: ₹615
– Rationale: The Nifty PSU Bank index’s multiyear breakout suggests strong upside in PSU banking stocks, with SBI poised to benefit from this setup.
**2. Reliance Industries (RIL):**
– Target Price: ₹3,000
– Stop Loss: ₹2,625
– Rationale: RIL has witnessed a fresh breakout from a rising channel pattern, and a weekly close above ₹2,660 may lead to strong outperformance against Nifty.
**3. Nazara Technologies:**
– Target Price: ₹1,030
– Stop Loss: ₹890
– Rationale: Nazara has consistently shown an uptrend, and a cup and handle pattern breakout on weekly charts, supported by RSI and MACD indicators, suggests further strength.
**4. YES Bank:**
– Target Price: ₹31
– Stop Loss: ₹21
– Rationale: YES Bank’s clean breakout on the weekly timeframe, coupled with Stochastics reversing, makes it an attractive option.
**5. KRBL:**
– Target Price: ₹420
– Stop Loss: ₹359
– Rationale: KRBL’s breakout after consolidating at 200 DEMA and violation of the bear-trendline indicate a bullish setup.
**6. Tanla Platforms:**
– Target Price: ₹1,350
– Stop Loss: ₹1,099
– Rationale: Tanla Platforms’ consolidation breakout, along with a bullish MACD crossover on weekly charts, signals potential strength.
**7. Mahindra Holidays & Resorts India:**
– Target Price: ₹460
– Stop Loss: ₹390
– Rationale: Strong recovery, crossing key moving averages, and a favorable RSI indicate a further rise in the stock.
**8. Exide Industries:**
– Target Price: ₹375
– Stop Loss: ₹320
– Rationale: Strong uptrend, breakout above ₹332, and RSI indicating a trend reversal suggest 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 signal a second round of momentum.
**Stocks recommended by Axis Securities:**
– Union Bank of India, HCL Technologies, and Oil & Natural Gas Corporation (ONGC) with buying ranges, target prices, and stop-loss levels provided for each.
These recommendations are based on both technical and fundamental analysis, and investors are advised to conduct their own research before making investment decisions. The market outlook suggests positive momentum, and these stock picks align with the current trend and potential opportunities in various sectors.
