Top Stock Recommendations: Sagar Doshi of Nuvama suggests MCX, Birlasoft, and HDFC AMC today

Stock Market News: The domestic benchmark indices, the Sensex and the Nifty 50, rose early on Wednesday, with the Sensex reaching a new all-time high level. However, shortly after, investors began to take profits, and the market began to move sideways.

In early trade, the 30-share BSE Sensex increased by 134.64 points to reach a new all-time high of 78,188.16. The Nifty increased to 23,749.50, up 28.2 points.

Subsequently, though, both benchmark indices had volatile trends and fluctuated between highs and lows.

Financial Services, IT, Media, and Private Banks were among the sectoral indices at the NSE that began in the green, while Auto, FMCG, Metal, Pharma, and PSU Banks were among those that opened in the red.

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UltraTech Cement, ICICI, NTPC, Bajaj Finance, Kotak Bank, Bajaj Finserve, Tata Motors, Hindustan Unilever, Adani Ports, Axis Bank, Bharti Airtel, ITC, and Reliance were among the companies that began on the BSE in the green, while Asian Paints, Titan, and Maruti Suzuki were among those that opened in the red.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that a common theme from seasoned investment gurus over the past six months has been that financials, especially largecap private banks, present possibilities for value acquisition. Over the past several days, some of these bluechips have experienced the anticipated breakthrough. These stocks should hold up well since their FY25 Q1 results should be excellent.

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Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50 continues to hold and make fresh all-time highs, week after week – with 23,500 levels scaled earlier this month, the index continues to remain on track for upside to 23,800 / 23,950. Support can softly be trailed higher to 23,500 odd levels which was also its previous target on the daily timeframe charts. India VIX levels also do not suggest market fearing any of the upcoming events. A buy-on-dip stance near 23,650 odd remains open for fresh longs to commence with an SL seen at 23,500 on spot Nifty 50.

Bank Nifty Outlook

Bank Nifty has roared back to life highs with Tuesday’s gain adding a 1,000 pt to its record highs, we have been bullish on view of private banks taking leadership allowing Bank Nifty to outperform in the near term. For now, 52,800 – 52,850 are levels to be looked on the upside post which only a close above the same could allow for further upside. Targets for the ongoing leg on Bank Nifty get competed at 52,800 – 52,850. Any dips near 52,200 odd should be used as an opportunity to buy.

Also Read: Stock market today: Why did Indian stock market reach its fresh all-time highs today? Explained

Top Stock Recommendations by Sagar Doshi

On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:

Multi Commodity Exchange of India Ltd (MCX) (BUY): LCP: ₹3,941.60; Stop Loss: ₹3,810.00; Target Price: ₹4,185.00

MCX has given a breakout of a sloping trendline in Tuesday’s trading session, the trendline breakout also confirms a slopping cup and handle pattern breakout on daily charts. A smooth 5% to 7% follow-up move in the direction of the breakout is now possible. Stock has already taken support on it 200 DMA earlier this month and is unlikely to repeat the same based on the current breakout.

Birlasoft Ltd (BUY): LCP: ₹695.75; Stop Loss: ₹675.00; Target Price: ₹729.00

Birlasoft has been consolidating a range for the past 3 weeks now after it gave a crossover above its 200 DMA. Today the stock has closed at a fresh 2 month high on daily charts alongside is on the verge of giving an inverted head and shoulder pattern breakout which is bullish for the near term. IT stocks have been attempting to make a move for couple of times in the past 1 month. With the Nifty IT index as well closing at a 2 month high, further up move in this breakout scrip is warranted.

HDFC Asset Management Company Ltd (BUY): LCP: ₹4,113; Stop Loss: ₹3,980; Target Price: ₹4350

The highest ever closing on daily charts was seen playing out in HDFC Asset Management Company on Tuesday. History suggests that a fresh all-time high closing on this scrip has generally seen a follow-up tailwind. On daily timeframe charts, the stock is also coming out from its 4-month-long sideways consolidation and a follow-up move from here is likely to be on the cards to print new all-time highs on charts.

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