Top Stock Recommendations: Osho Krishan of Angel One recommends buying Sun TV and Nippon Life India tomorrow

Stock Market News: The domestic equity benchmark indices, the Sensex and the Nifty 50, finished Wednesday's session on a positive note as metal, public sector undertakings (PSU) bank, and oil and gas stocks led the way amid mixed global cues ahead of US inflation data.

The S&P BSE Sensex gained 0.47% to 75,038.15, while the NSE Nifty 50 rose by 0.49% to 22,753.80, reaching an all-time high in intraday trading for the third straight day. The closing highs for both blue-chip indices were record breaking levels, with the Sensex crossing over 75,000 for the first time.

On the broader market front, the mid-caps that rose 1% had a record closing high for the third time in five sessions, while the small-caps saw a rise of around 0.73%.

Also Read: Share market today: Sensex closes above 75k for the first time; investors earn over ₹2 lakh crore in a day

In March 2024, US inflation grew more than anticipated, mostly due to rising fuel and housing expenses, disappointed hopes of a US Federal Reserve interest rate cut in June. Data issued by the Labor Department's Bureau of Labor Statistics on Wednesday, April 10, showed that the US consumer price index (CPI) increased by 0.4% sequentially, above Wall Street projections.

The Fed's current path of three rate cuts in 2024 is seriously under doubt, according to lead economist Madhavi Arora of Emkay Global Financial Services. A third consecutive "hotter-than-expected" CPI release has thrown the "bump is a blip" narrative into disarray and reduced market pricing to less than two cuts.

On account of Eid Celebrations, our stock exchanges will be closed today (Thursday, April 11). 

Also Read: US inflation beats Wall Street estimates, rises 0.4% in March; Fed's June rate cut hopes fade away

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Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The bullish momentum persisted as broader markets remained active, witnessing remarkable movements in individual stocks. However, on the index front, there appeared to be little significant development, marked by the formation of a small-bodied candle on the daily chart and prices continuing to fluctuate within the upper range of a 'Rising Channel' pattern. Coupled with the observation of a '2-point Negative Divergence' on the RSI smoothened indicator, this suggests a prudent approach, possibly with traders opting for lighter positions on the index and focusing more on specific stock movements. Such technical indicators hint at a potential secondary trend, either a price or time-wise correction, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.

Also Read: World markets today: US stocks sink after March inflation data, Treasury yields jump

Share Market Tips

Going ahead, the nature of the correction that unfolds will be pivotal. A price-based correction could trigger broad market profit-taking, whereas a time-wise correction might maintain the benchmark index within a range while individual stocks continue to outperform. Amidst this uncertainty, it's advisable to avoid aggressive bets and instead continue with disciplined stock-specific trades, ensuring proper exit strategies are in place.

Key levels to monitor include 22,800–22,850 as significant resistance, followed by psychological resistance at 23,000, with immediate support observed around 22,600–22,550. Furthermore, market reactions to global events should not be overlooked, as they may shape the next phase of movement, advised Krishan.

Also Read: Gold prices drop from all-time highs over strong US inflation figures

Top Stock Recommendations For Friday by Osho Krishan

On stocks to buy on Friday, Osho Krishan recommended two stocks - Sun TV Network Ltd and Nippon Life India Asset Management Ltd.

Sun TV Network Ltd

Sun TV Network after a decent correction from the highs of the 730 subzone, has witnessed some buying traction from its 200 SMA on the daily time frame. The recent volume-based resurgence has turned around the bearish view, as it eloped above all its significant EMAs on the daily chart. Also, the technical parameters have showcased a positive crossover, suggesting an opportunity to gauge upcoming momentum in the counter.

"Hence, we recommend BUY Sun TV around ₹620, keeping a stop loss of ₹595 for a positional target of ₹660," said Osho.

Also Read: Stock market holiday: NSE, BSE to remain closed tomorrow for trading on account of Eid-Ul-Fitr 2024

Nippon Life India Asset Management Ltd

Nippon Life India has been in a secular uptrend and, with the recent development, has clocked new record high levels. The stock has seen a stellar rally in the last three weeks, which made a V-shaped recovery and decisively surpassed the previous high. Technically, all major indicators are strongly aligned with the primary trend, and the stock looks poised to continue its upward march in the comparable period.

"Hence, we recommend to BUY Nippon Life India around ₹540-530, keeping a stop loss of ₹510 for a positional target of ₹590," said Krishan.

Also Read: Oil prices drop after high US crude stock offsets impact of Middle-East conflict; Brent at $89/bbl

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.