Closing Bell: SBI to Ultratech – Vinay Rajani of HDFC Securities suggests these three stocks to buy in the near-term

Stock market today: Indian stock markets rebounded on Thursday after a weak beginning in the morning. By mid-session, the markets had climbed approximately 2 percent due to a robust domestic story and foreign portfolio investor (FPI) purchases, according to experts. The Nifty 50 index rose by over 400 points to reach 23,856.50. Similarly, the BSE Sensex increased significantly, gaining over 1,520 points to hit 78,566.25 in the last one hour.

Market analysts note that India has remained resilient following the sell-off on April 2. There has been a favorable re-rating of Indian markets due to a solid domestic story and the absence of vulnerabilities in the external sector. FPI have shifted to being net buyers this week, driven by the re-rating, the strengthening of the rupee, and a positive outlook for a resilient corporate sector in India.

A forecast indicating normal to above-normal monsoons has bolstered domestic consumption, along with monetary easing and significant liquidity provided by the Reserve Bank of India (RBI), which is enhancing both financial conditions and market sentiment.

In terms of sector performance, all sector stocks, except Nifty IT, moved up into positive territory. Nifty Banking stocks led the gains, with the Private Bank index climbing by over 1.3 percent, and other sectors also showed signs of recovery.

Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities

Nifty 50

In the last seven trading sessions, Nifty 50 registered a rally of more than 2,000 points, which has pushed the index very near to its previous swing high of 23869. Fin Nifty is placed at an all-time high, while Bank Nifty is just a few points away from its all-time high. Nifty 50 is now placed above all key moving averages, which indicates bullish trend on all time frames. Any level above 23,869 in Nifty 50 could further push the index towards next resistances of 24,050 and 24,545, which happens to be 50% and 61.8% retracement of the entire fall seen from 26,277 to recent swing low 21,743. Support for the index has shifted up at 23,500 followed by 23,350.

Technical Picks: Stocks to buy in the near-term

Vinay Rajani of HDFC Securities recommends these three stocks in the near term – State Bank of India (SBI), Patanjali Foods, and UltraTech Cement.

Buy SBI(790) | Target ₹850 | Stop-loss ₹760

SBI share price has broken out from bullish inverted head and shoulder pattern on the daily chart. Stock price has reclaimed its level above 200 DEMA, which further confirms the reversal of bearish trend. Stock is now placed above all key moving averages. Daily RSI has reached above 50, indicating a sustainable up trend. Daily MACD is placed above equilibrium and signal line. Stock price has started forming higher top and higher bottom on daily chart

Buy Patanjali Foods (1,980): | Target ₹2,150 | Stop-loss ₹1,900

Patanjali Foods share price has broken out from symmetrical triangle on the weekly chart. Stock price is hovering near its 52 week and all-time high. Stock is placed above all important moving averages. Weekly RSI has reached above 50, indicating a sustainable up trend. Weekly MACD is placed above equilibrium and signal line. Stock prices has started forming higher top and higher bottom on daily chart.

Buy Ultratech Cement (11,800): | Target ₹12,800 | Stop-loss ₹11,300

Ultratech Cement share price seems to be breaking out from the consolidation, which has been holding for last 10 months. Stock has shown resilient movement in last three months. Primary trend of the stock is bullish as stock is holding above all key moving averages. Cement as a sector has started outperforming.

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.