Stocks in focus: Rajesh Palviya of Axis Securities recommends IPCA Lab, Cyient, and Tech Mahindra today

Stock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, opened flat on Friday prior to the Reserve Bank of India's (RBI) monetary policy announcement, which is anticipated to see the central bank retain its key interest rate for a seventh consecutive meeting. 

At 9:15 IST, the NSE Nifty 50 index was down 0.13% at 22,486.40, while the BSE Sensex was up 0.08% at 74,287.02.

The Sensex and the Nifty 50 swiftly rebounded to set fresh records on Thursday, propelled by buying in information technology (IT), consumer durables, and financial sectors on hopes of a strong corporate performance. The Nifty SmallCap index did better in the broader market, rising 0.45%, while the MidCap 50 underperformed, falling 0.11%.

The 30-share BSE Sensex ended higher by 350.81 points or 0.47% at 74,227.63 level while the Nifty 50 closed at 22,514.65 level, up 80 points or 0.36%.

Also Read: Stock Market Live Updates | Sensex Today : RBI keeps repo rate at 6.5%, pegs GDP at 7%, inflation at 4.5%; markets muted

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

The benchmark index is in a strong uptrend, forming a series of higher tops and bottoms. It has also registered a new all-time high at 22,619 levels, representing bullish sentiments. The short- and medium-term outlook stands bullish, with an expected upside of 22,700–22,800. On the other hand, the crucial support is at 22,300 levels. The index is well above its 20, 50, 100, and 200-day SMA, reconfirming bullish sentiments. The daily strength indicator RSI is in positive terrain, signalling rising strength, said Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities.

The Nifty 50 has witnessed a short covering with a price gain of 0.97% (217 points) and a decrease in open interest by 10%. Per the options data of the April expiry scheduled on 11th April, the resistance is around 22,800 and 23,000, while support is at 22,500 and 22,300, stated Palviya.

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Stocks in focus today - Stock recommendation for Friday by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities.

IPCA Laboratories Ltd (CMP: ₹1,275)

With Thursday's significant upmove of 4%, the stock has decisively broken out of its 6-8 weeks "multiple resistance" zone at 1,265 levels. This breakout, accompanied by huge volumes, signifies increased participation. Recently, the stock has recaptured its 20, 50, and 100-day SMA and rebounded sharply, indicating a strong comeback of bulls. The daily and weekly "band Bollinger" buy signal suggests increased momentum, said Rajesh.

IPCA Lab has seen price gains of 3.14% (39 points) and an increase in open interest of 24 %( provisional), indicating a Long Build Up. In the April series, there has been a high OI concentration at 1,280 call strike followed by 1,300 and 1,350, indicating a probable resistance zone, while the support is at 1,250 and 1,200 levels.

Investors should buy, hold, and accumulate this stock with an expected upside of 1,350-1,400 with a downside support zone of 1,220-1,200, advised Palviya.

Also Read: RBI monetary policy 2024: Central bank keeps real GDP growth projection at 7% for FY25

Cyient Ltd (CMP: 2,155.70)

With daily price action, the stock has confirmed a "descending triangle" breakout at 2,070 levels with huge volumes. This consolidation was strongly supported by 200-day SMA support (1,829). The stock is well above its 20, 50, and 100-day SMA, indicating bullish sentiments. The daily, weekly, and monthly strength indicator RSI is in positive terrain, showing sustained strength. The daily "band Bollinger" buy signals indicate increased momentum, explained Rajesh.

Investors should buy, hold, and accumulate this stock with an expected upside of 2,400-2,450 with a downside support zone of 2,070-2,000, advised Palviya.

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Tech Mahindra Ltd (CMP: 1,278.15)

For the past three months, it has been in corrective mode. However, recently, this stock has recaptured its 200-day SMA (1,231), which remains a positive sign. It has also broken out the past three months' "down-sloping" trendline at 1,260 levels, with huge volumes indicating a short-term trend reversal. The daily strength indicator RSI has turned bullish, showing rising strength, said Rajesh.

Investors should buy, hold, and accumulate this stock with an expected upside of 1,340–1,385 and a downside support zone of 1,260–1,240, advised Palviya.

Tech Mahindra for the April series has seen price gains of 3.20% (40 points) and an increase in open interest of 13% ( provisional), indicating a long build-up. High OI concentration is seen at 1,300 call strikes, followed by 1,340 and 1,400, indicating a probable resistance zone, while support is at 1,260 and 1,240, as highlighted by Rajesh.

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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.