BackStock in focus: Rajesh Palviya of Axis Securities recommends Exide, Va Tech Wabag, and Glenmark today
Stock in focus: Rajesh Palviya has recommended to buy, hold, and accumulate Exide Industries Ltd, Va Tech Wabag Ltd, and Glenmark Pharmaceuticals Ltd today.
PremiumStock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, rose in early trade on Friday, extending their gain for the third day in a row, ahead of the RBI's monetary policy announcement today. Buying in IT stocks contributed to the market's bullish trend.
The 30-share BSE Sensex rose 254.53 points to 75,329.04 in early trading. The NSE Nifty rose by 99.4 points to 22,920.80.
Following Tuesday's dramatic tumble, the BSE benchmark has risen 2,995.46 points, or 4.15 percent, over the last two days.
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, in the near term, the market is expected to be pushed down by massive FII selling, which has totaled ₹24,960 crores in the previous three days. As a result, largecaps in industries such as finance and information technology, where FIIs handle mega amounts of money, may underperform. This pattern will alter once FIIs become purchasers, which is unavoidable. Meanwhile, long-term investors may collect these high-quality largecaps in an otherwise highly valued market with a wide margin of safety.
Excessive speculative activity occurs in stocks with a very low floating stock. Retail investors who engage in these speculative activities face significant risks.Today’s monetary policy meet is not expected to impact the market since any rate action by the MPC is unlikely, said Vijayakumar.
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities
Since March 2023, the benchmark index has been trending higher within an "Up-sloping Channel," bounded by 23,800 and 21,200 levels. A breakout from this range could potentially spark fresh momentum in either direction. Currently, the index is favorably positioned above its 20, 50, 100, and 200-day Simple Moving Averages (SMA), reaffirming a bullish trend. The monthly Relative Strength Index (RSI) indicates sustained long-term strength, while the weekly RSI has flattened, suggesting a temporary absence of momentum, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
Nifty 50 in the current series has witnessed Long Unwinding, with a price gain of 1.35% (305 points) and a decrease in open interest by 10%. As per options data for the weekly expiry scheduled on June 13th, 23,200 and 23,500 Call strikes have high OI concentrations, indicating strong resistance; on the Put side, high open interest concentrations were in 22,700 and 22,800, acting as support, while the pivotal level will be 23,000, explained Palviya.
Also Read: RBI monetary policy: Inflation to growth outlook - 5 key highlights from RBI MPC outcome
Stock in focus today - Stock recommendation for Friday by Rajesh Palviya
Exide Industries Ltd (CMP: ₹528)
Exide Industries has registered an all-time high at 536 levels , representing bullish sentiments. The stock is in a strong uptrend, forming a series of higher tops and bottoms. It has recaptured its 20—and 50-day SMA and rebounded sharply, reconfirming the bullish trend. Multiple Resistance breakouts at 510, along with huge volumes, signal increased participation.The daily and weekly strength indicator RSI has turned bullish, which indicates rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of 550-567 with a downside support zone of 500-490 levels.
Today, Exide Industries has seen a price gain of 7.52% in the current expiry and an increase in open interest by 14%, as per provisional data, indicating a long buildup. In the June series there has been a high OI concentration at 550 call strike followed by 580 indicating a probable resistance zone, while strong support is seen at 500 & 510 levels as significant OI concentration on Put side has been seen. Unwinding in the 500 & 510 call strike further augments a positive view on the stock.
Va Tech Wabag Ltd (CMP: ₹1,085)
With strong gains of 15%, the stock has decisively broken out of the past 5-6 months' "multiple resistance" zone at 1040 levels on a closing basis. This breakout is accompanied with huge volumes which shows increased participation. The stock is well placed above its 20, 50, 100 and 200-day SMA, which confirms the bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain, indicating sustained strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of 1,170-1,260 and a downside support zone of 1,020-950 levels.
Glenmark Pharmaceuticals Ltd (CMP: ₹1,213)
Glenmark has registered a new high at 1,216 levels, indicating a positive bias. Prices have recaptured their 20—and 50-day SMAs and rebounded sharply, reconfirming a bullish trend. The weekly "band Bollinger" buy signal shows increased participation. Huge rising volumes on such rallies signify increased participation. The daily, weekly, and monthly strength indicator RSI is in positive terrain, indicating sustained strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of 1,273-1,330 and a downside support zone of 1,160-1,100 levels.
Glenmark has witnessed a Long buildup with price gains of 3% (35 points) and an increase in open interest of 2% (as per today's provisional data). In the June series, high OI is seen at the 1,240 call strike, followed by 1,250 and 1,300, indicating a probable resistance zone. Support is seen at 1,160, followed by 1,140. Significant writing at 1,200 Put further indicates strong support for the stock.
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 decisions.
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