Stock Picks: Sagar Doshi suggests Titagarh Rail, ICICI Prudential, CESC shares to buy today - 2 July

Stock market today: Indian stock markets began on a positive trajectory on Wednesday, buoyed by optimism regarding a possible trade agreement between India and the US.

The Nifty 50 index commenced at 25,588.30 points, rising by 46.50 points or 0.18%, while the Sensex started at 83,790.72, increasing by 93.43 points or 0.11%.

Analysts have observed that, despite the initial gains, Indian stocks are expected to remain within a certain range temporarily due to ongoing outflows from foreign portfolio investors (FPIs). Nevertheless, they also think that the forthcoming earnings season for corporations will play a crucial role in setting the future course for the markets.

On the technical front, Sagar Doshi of Nuvama advises investors to remain cautious at these stretched levels for index longs since all of its short term targets have been complete as of Friday. Doshi recommends three stocks to buy today. Here's what he says about the overall market.

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

Nifty 50

Nifty 50 consolidated within its previous day’s range forming an inside bar formation just a day after the index saw an engulfing bearish formation on daily charts. Despite an underlying current being strong lifting the index to 9 month highs and only 3% away from its all time highs - the MMI greed and fear index for Indian equities has entered the ‘extreme greed’ zone with a reading above 75/100. Charts have opened up for 26,000+ and a support seen at 25,250, however given the candlestick formation and MMI indication it is advisable to remain cautious at these stretched levels for index longs since all of its short term targets have been complete as of Friday.

Bank Nifty

Bank Nifty made another fresh all-time highs in trade yesterday - index remains open to scale towards 57,900 odd levels. Trailed support is seen at 57,000 while charts in Bank Nifty as well look stretched on daily timeframe.

Stock Picks: Stocks To Buy on Wednesday- Sagar Doshi

On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Titagarh Rail Systems Ltd, ICICI Prudential Life Insurance Company Ltd, and CESC Ltd.

Titagarh Rail Systems (BUY): LCP: ₹963.75; SL: ₹933; TGT: ₹1,036

Titagarh Rail Systems share price has closed at 5 month highs, after given multiple breakouts in daily and weekly timeframes in the month of June. A fresh 6 month trendline breakout has also been observed last week which is likely to lift the stock 10% higher from its breakout point of 938.

ICICI Prudential Life Insurance Company (BUY): LCP: ₹660.75; SL: ₹645; TGT: ₹723

Marking an end to its 9 month correction, charts of ICICI Prudential Life Insurance Company share price have given a bullish breakout from a sloping trendline which was in place from Oct 2024. Resistance of 200 DMA has also been reclaimed earlier this week while momentum is set to pick up on sustaining or closing above 667 for targets of 8-10% higher.

CESC (BUY): LCP: ₹176.45; SL: ₹170; TGT: ₹190

Bullish pole and flag breakout after crossing over its 200 DMA has been spotted on daily charts of CESC. Along with this, a 9 month trendline breakout is also seen on higher timeframe charts hinting towards the stock price scaling for fresh all time highs. For now, we are projecting 190 as targets in this leg, however upside for 215+ remains open.

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.