Rajesh Palviya of Axis Sec suggests IIFL Finance, SRF, HLE Glascoat shares to buy today

Indian benchmark indices opened higher on Friday, supported by gains in information technology heavyweights, as investors cheered Tech Mahindra's better-than-expected quarterly performance while positioning ahead of earnings from several blue-chip companies.

The Nifty 50 advanced 0.38% to 24,166.50, while the BSE Sensex climbed 0.47% to 77,543.10 in early trade.

Market participants remained focused on the ongoing June-quarter earnings season, with Reliance Industries gaining 1.1% ahead of its financial results due after market hours. Banking heavyweights HDFC Bank and ICICI Bank also traded around 0.7% higher as investors awaited their earnings announcements over the weekend.

Sectoral performance was mixed, with eight of the 16 major sectoral indices trading in positive territory. The broader market underperformed the benchmarks, with the Nifty Smallcap and Nifty Midcap indices declining 0.6% and 0.4%, respectively.

The Nifty IT index emerged as the top sectoral gainer, rising 2%. Tech Mahindra surged 3% after reporting quarterly revenue that exceeded Street expectations, supported by strong growth in its manufacturing vertical and favourable currency movements stemming from a weaker rupee.

In contrast, Wipro slipped 1.7% after missing analysts' earnings estimates and issuing a cautious outlook, signalling that the recovery in demand remains uneven.

Meanwhile, investor sentiment remained guarded amid escalating geopolitical tensions in the Middle East. Brent crude climbed about 1% to around $85 per barrel after the United States and Iran intensified military action across the Gulf, keeping concern

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

Nifty 50

For the seventh consecutive session, the benchmark index has consolidated within 24,300-23,800 levels, indicating a short-term sideways trend. A breakout above or below this consolidation range may indicate the next direction. The immediate resistance is placed around the 24,200 levels, and any sustainable upmove above the same may lead momentum towards 24,300-24,500 levels.

On the downside, violation of the 24,000 level may indicate further weakness towards the 23,800 level. The crucial moving averages, i.e 20, 50 and 100-day SMAs, have turned flat, signalling a neutral bias. The daily strength indicator RSI has also turned flat, indicating a lack of momentum.

Stocks to buy today

IIFL Finance Cmp: ₹566

On the daily chart, the stock is trending higher, forming a series of higher tops and bottoms, indicating bullish sentiments. Additionally, the stock decisively surpassed the "multiple resistance" breakout at the 557 level on a closing basis, accompanied by high volumes, indicating a positive bias. The stock is well above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment. The daily and weekly "Bollinger Band" buy signals indicate increased momentum.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is 585-600, and its downside support zone is the 555-545 levels.

SRF Cmp: ₹2,890

The stock has decisively surpassed the past three months' "multiple resistance zone" of 2860 levels, accompanied by huge volumes, indicating resumption of the prior uptrend. The daily "Bollinger Band" buy signals indicate increased momentum. The stock is well placed above its 20, 50, 100 and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment. The daily and weekly RSI remain bullish, indicating rising strength.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is 3,000-3,100, and its downside support zone is the 2,850-2,800 levels.

HLE Glascoat Cmp: ₹435

On the daily and weekly chart, the stock is in a strong uptrend, forming a series of higher tops and bottoms formation indicating positive bias. The stock is firmly sustaining above its multiple resistance zones at the 413-415 levels on a closing basis, which shows positive bias. The stock is well placed above its 20, 50, 100 and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment. The daily and weekly RSI remain bullish, indicating rising strength.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is 480-500, and its downside support zone is the 418-410 levels.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.