Stocks in focus: Rajesh Palviya of Axis Securities recommends PNB Housing Finance, PFC, and Tata Motors today

Stock Market News: On the final trading day of August, the domestic benchmark indices, the Nifty 50 and Sensex, started the day higher than they ended, riding a global stock market rally spurred by the US economy's robust GDP figures.

The BSE Sensex jumped by 0.61%, or 502 points, to begin at 82,637.03 points, while the Nifty 50 index gained 97.75 points, or 0.39%, to open at 25,249.70.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, claims that the absence of volatility in the market is a key component of the recent trend. Over the past 11 trading sessions, the market has been rising gradually while the VIX, which measures volatility, has decreased to 13.79. The market's durability has been aided by the DIIs, HNIs, and FIIs continuing to accumulate high-quality largecaps, as well as by their considerable reduction in selling and purchasing on particular days. The market is probably going to stay in this short-term trend.

Share Market Tips and 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 reached an all-time high at 25192, indicating bullish sentiment. The index is well above its 20, 50, 100, and 200-day SMAs, confirming a bullish trend. We anticipate that this momentum is likely to extend towards 25,300-25,500 levels. On the other hand, the short-term support zones are located around 24,800-24,500 levels. The daily and weekly strength indicator RSI is in positive terrain and is quoting above the 50 mark, supporting rising strength.

Stocks in focus today - Stock recommendation for Friday by Rajesh Palviya

PNB Housing Finance Ltd (CMP: ₹951)

On the daily chart, the stock has decisively broken out past the 7-8 month "multiple resistance" zone at 905 levels on a closing basis, indicating strong bullish momentum. This breakout is accompanied by huge volumes, indicating increased participation. The stock has recaptured its short-term averages and rebounded sharply, which reconfirms bullish sentiments. The buy signals for the "band Bollinger" on both the daily and weekly charts indicate a rise in momentum. Additionally, the daily, weekly, and monthly RSI are in positive territory, showing rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of ₹1,000-1,120 with downside support zone of ₹905-880 levels.

Power Finance Corporation Ltd (PFC) (CMP: ₹555)

Since May 2024, the stock has been trading in a range between 580 and 460, indicating a short to medium-term sideways trend. Recently, the stock has regained both the 20-day and 50-day SMA and has rebounded sharply, confirming a positive trend. On the weekly and monthly charts, the stock is showing a strong uptrend, forming a series of higher tops and bottoms. Additionally, the daily, weekly, and monthly RSI is in positive terrain, indicating increasing strength.

Investors should buy, hold and accumulate this stock with an expected upside of ₹600-630 with downside support zone of ₹528- 510 levels.

Tata Motors Ltd (CMP: ₹1,112)

The stock's current closing price has surpassed the multiple resistance zone of 1105 levels for the past four weeks on a closing basis. This breakout was accompanied by high trading volumes. The stock is comfortably above its 20-day SMA of 1073, which serves as a crucial support level. Additionally, both the daily and weekly RSI indicators are in positive terrain, indicating increasing strength.

Investors should buy, hold and accumulate this stock with an expected upside of ₹1,200-1,300 with downside support zone of ₹1,060-1,040 levels.

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 decision.