BackStock in focus: Rajesh Palviya of Axis Securities recommends Firstsource Solutions, Canara Bank, and JSW Steel today
Stock in focus: Rajesh Palviya has recommended to buy, hold, and accumulate Firstsource Solutions Ltd, Canara Bank, and JSW Steel Ltd.
PremiumStock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, began the first day of the May series with modest gains amid positive global cues and led by gains in information technology (IT), media, and metal stocks.
The Nifty 50 was up by 50.10 points, begin trading at 22,620.40, while the Sensex rose by 169.87 points, kicking off at 74,509.31.
Chief Investment Strategist at Geojit Financial Services Dr. V K Vijayakumar stated that yesterday's significant DII buying of Rs. 6167 crores entirely outweighed the ongoing FII selling, demonstrating the market's resilience for a fifth day in a row. The buy-on-dips approach has shown to be effective in the current bull market, and investors should keep using it.
US data shows that the US economy is weakening. Although Q1 GDP growth was 1.6% less than anticipated, the Fed is unlikely to cut rates in the upcoming sessions because inflation is still very high, according to Vijayakumar.
Also Read: Sensex Today Live Updates: Sensex, Nifty open in the green as global peers gain; TechM, Indigo, Tata Steel, Vedanta eyed
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities
Since Feb '24, the benchmark index has continued to consolidate within a broad trading range (22800–21700), indicating a sideways trend. However, the index is well placed and sustaining above its 20, 50, 100, and 200-day SMA. These averages are also inching up along with every rally, which signifies a long-term bullish trend. Short-term traders are advised to adopt a buy-on-dips strategy and follow 22300 as an immediate support zone, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
The Nifty 50 in the current series has witnessed a long buildup with a marginal price gain of 0.38% (85 points) and an increase in open interest by 35% as per provisional data, while today's monthly expiry provisional rollover stood at 63%, which is lower than the previous expiry of 68% overall, indicating a lack of confidence in bulls w.r.t next expiry. As per the options data of the weekly expiry scheduled on 02nd May, 22,900 and 23,000 Call strikes have high OI concentrations, indicating a strong resistance, while on the Put side, high open interest concentrations were in 22,000, 22,500, and 22,400, hinting towards support, explained Palviya.
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Stock in focus today - Stock recommendation for Friday by Rajesh Palviya
Firstsource Solutions Ltd (CMP: ₹215.95)
With Thursday's strong gains of 6%, the stock has decisively broken out its past couple of months "multiple resistance" zone of 208 levels on a closing basis. This breakout is accompanied with huge volumes, which signify increased participation in a rally. Recently, the stock has recaptured its 20, 50, and 100-day SMA and rebounded sharply, which reconfirms bullish trend, said Rajesh.
The daily and weekly strength indicator RSI is in positive terrain, which signals rising strength.
Investors should buy, hold, and accumulate this stock with an expected upside of 235–250 with a downside support zone of 205–198 levels, advised Palviya.
Canara Bank (CMP: ₹617.85)
On the daily and weekly time frames, the stock is in a strong uptrend, forming a series of higher tops and bottoms, indicating a sustained uptrend. Recently, the stock has recaptured its 20- and 50-day SMA and rebounded sharply, reconfirming the bullish trend. Huge rising volumes signal a strong comeback of bulls, said Rajesh.
Investors should buy, hold, and accumulate this stock with an expected upside of 655–685 with a downside support zone of 595–570 levels, advised Palviya.
Canara Bank has seen price gains of 5% (30 points) in the current expiry and an increase in open interest of 30% as per provisional data, indicating a long buildup. In the May series, there has been a high OI concentration at the 620 call strike, followed by 650 and 700, indicating a probable resistance zone. Strong support is seen at the 600 level, as significant Put addition has been seen at the same, followed by 580 and 550, explained Rajesh.
JSW Steel Ltd (CMP: ₹913.15)
The stock is in a strong uptrend across all the time frames, indicating a positive bias. It has also registered an all-time high at 909 levels, which reconfirms bullish sentiments. On the daily chart, it has confirmed a "Cup & handle" formation breakout at 888 levels, along with huge volumes indicating increased participation. The stock is well placed above its 20, 50, 100, and 200-day SMA, which reconfirms a bullish trend. The daily and weekly strength indicator RSI is in positive terrain, which signals rising strength, said Palviya.
Investors should buy, hold, and accumulate this stock with an expected upside of 950–985 with a downside support zone of 880–870 levels, advised Rajesh.
JSW Steel has witnessed price gains of 7.50% (63 points) and an increase in open interest of 10% (as per today's provisional data), indicating a strong Long Build Up. In the May series, there has been high OI concentration at the 900 call strike, followed by 920 and 950, indicating a probable resistance zone, while support is seen at the 850 and 800 levels as high OI concentration is seen in Put strike, explained Palviya.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 26
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.
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