Top Stock Recommendations: Osho Krishan of Angel One suggests buying Birlasoft, and EID Parry today

Stock Market News: The domestic benchmark equity indices, the Sensex and the Nifty 50 began trading higher on Thursday. The previous day, they had seen their largest one-day increase in more than three years, coinciding with Narendra Modi's announcement that he will seek a third term.

As of 9:17 IST, the S&P BSE Sensex was up 0.6% to 74,774, while the NSE Nifty 50 index was up 0.5% at 22,733. On Wednesday, the benchmark indices closed more than 3% higher.

The global landscape has improved with a growing likelihood of rate reduction by the Fed, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, as the market returns to normal following the unusual volatility of the previous three days. A noticeable deterioration in the US labor market has caused the yield on US bonds to drop sharply to 4.29%. While this is good news for foreign investors, FIIs are still selling Indian equities at high prices, especially when compared to the low prices of Chinese stocks.

While political stability prevails for the time being, market volatility will persist due to ongoing political developments. The market is worried that the BJP's reliance on partners may cause economic reforms to be neglected, which would eventually hurt growth and company profits, said Vijayakumar.

Also Read: Sensex Today Live Updates : Sensex up 500pts, Nifty at 22,770; BHEL, IEX, KP Green shares climb

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

The Indian equity market is currently experiencing dynamic movements characterised by substantial swings in both directions. After the downturn from the previous session, there has been a notable reversal fuelled by short covering. The benchmark index made an impressive gain of over 3 percent from the previous closing and established itself above the 20-day Exponential Moving Average (DEMA) at the 22,620 level, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.

Both counterparties are putting forth their best efforts in response to the news about the Lok Sabha election, resulting in whipsaw moves. The recent fluctuations in trading signify a greater level of volatility, indicating wider swings in market trends, creating a challenging environment for the traders’ fraternity. Technically, the persuasion over the fall seems to be a constructive development and sustainability is likely to attract positive momentum in the primary trend. As far as levels are concerned, 22,500-22,400 is likely to cushion a short-term blip, followed by the strong support of the lower band of the channel placed around the 22,200-22,100 subzone. Additionally, 22,800 is expected to provide intermediate resistance, followed by a solid barrier at the psychological mark of 23,000, explained Krishan.

The market has experienced substantial support from diverse sectors, resulting in a significant improvement in market depth. Presently, all focus is on the upcoming RBI MPC meeting and its potential impact on the market. Nonetheless, it is prudent to exercise caution as our markets have not entirely overcome their challenges, added Osho.

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Top Stock Recommendations For Thursday by Osho Krishan

On stocks to buy today, Osho Krishan recommended two stocks - Birlasoft Ltd, and E.I.D.-Parry (India) Ltd.

Birlasoft Ltd

Birlasoft has witnessed a 50 percent retracement of the vertical rally from the 250-840 subzone, coinciding with the neckline of the breakout it showed in October last year. Also with the recent development of traction in the IT space is likely to play for the counter. On the oscillator front, MACD and 14 period RSI is showcasing a reversal in the trend from the oversold territory, suggesting a lucrative risk-reward ratio in the counter from short to medium term time frame.

"Hence, we recommend to BUY Birlasoft around ₹620 keeping a stop loss of ₹580 for a potential target of ₹690-700," said Osho.

Also Read: Cochin Shipyard, NBCC, BEL, NTPC among other PSU stocks rally up to 8%; Nifty CPSE jumps 4%

E.I.D.-Parry (India) Ltd

EID Parry witnessed a decisive spurt in price volume in the last couple of trading sessions, soaring to its lifetime high. The counter has witnessed a multiweek breakout to register record highs and re-tested the neckline amidst the recent volatility. From a technical standpoint, the counter has witnessed a ‘Cup & Handle’ pattern breakout, backed by decent volumes. On the oscillator front, 14-period RSI and MACD both signal a continuation move, suggesting a potential upside journey in a comparable period.

“Hence, we recommend to BUY EID Parry around ₹670-650 keeping a stop loss of 600 for a potential Target of ₹740-750,” advised Krishan.

Also Read: Stock market today: Nifty 50, Sensex rebound sharply; investors earn about ₹13 lakh crore in a day

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.