BackStock in focus: Rajesh Palviya of Axis Securities recommends Infosys, Bajaj Finance, and ACC today
Stock in focus: Rajesh Palviya has recommended to buy, hold, and accumulate Infosys Ltd, Bajaj Finance Ltd, and ACC Ltd.
PremiumStock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50,kicked off the Friday session lower but quickly recovered to trade higher. Nifty 50 rose from 22,000 to the record milestone of 23,000. Furthermore, it had gone up by 3,000 points (from 20,000 to 23,000) in the previous eight months. The Nifty 50 reached its record high level after 88 trading sessions.
Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One the Nifty 50 clocked a new high to reach a milestone of 23000, but immediate follow-up is missing, bias remains positive, and traders should have a buy-on-dip approach. Key indices may consolidate, whereas broader markets may continue to outperform. 23,100 - 23,200 stiff resistance of the rising channel means one should look to book longs ahead of the key election result verdict.
Also Read: Nifty 50 tops 23,000 mark for the first time, reverses gains quickly to trade in the red
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities
The benchmark index has registered a new high at 22,993, indicating bullish sentiments. The Nifty 50 continues to trend higher, forming a series of higher tops and bottoms, indicating a bullish trend. It has also decisively broken out of the past three months' consolidation resistance zone at 22,800 levels on a closing basis, which remains a positive sign. The short-term supports are placed around 22,800–22,500 levels. On the upside, the index may extend its rally towards 23,000–23,300 levels in the near term, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
Nifty 50 in the current series has witnessed a Long Buildup with a price gain of 1.56% (350 points) and an increase in open interest by 35%. As per options data for the monthly expiry scheduled on 29th May, 23,200 and 23,500 Call strikes have high OI concentrations, indicating strong resistance; on the Put side, high open interest concentrations were at 22,500 and 22,700, acting as support, while the pivotal level will be 23,000, explained Palviya.
Stock in focus today - Stock recommendation for Friday by Rajesh Palviya
Infosys Ltd (CMP): ₹1,471
The stock has confirmed the past four weeks' "consolidation range" breakout at 1460 levels. This breakout is ACCompanied by huge volumes, which signals increased participation. This breakout also confirms a short-term trend reversal. The recent buying support was observed from 20-day SMA support (1,434), which reconfirms a short-term bullish trend. The daily and weekly strength indicator RSI has turned bullish, which indicates rising strength. The "band Bollinger" buy signal justifies rising momentum, said Rajesh.
Investors should buy, hold, and accumulate this stock, with an expected upside of 1,530-1,600 and a downside support zone of 1,450-1,430.
Infosys today has seen a price gain of 1.12% in current expiry and an increase in open interest of 2.11% as per provisional data, indicating a Long Build Up. In the May series, there has been a high OI concentration at 1,500 call strike followed by 1,480, indicating a probable resistance zone. Strong support is seen at 1,440 and 1,400 levels as significant OI concentration on the Put side has been seen. Unwinding in the 1,440 & 1,460 call strike further augments a positive view on the stock, explained Palviya.
Bajaj Finance Ltd (CMP): ₹6,828
For the past couple of weeks, the stock was hovering around its prior breakout zone of 6,600 levels. The stock has recaptured its 20-day SMa and rebounded sharply.The daily and weekly strength indicator RSI has turned bullish which indicates rising strength near the support zone, said Rajesh.
Investors should buy, hold, and accumulate this stock, which has an expected upside of 7,000-7,185 and a downside support zone of 6,700-6,600.
Bajaj Finance has witnessed a Long buildup, with price gains of 1.36% (92 points) and an increase in open interest of 1% (as per today's provisional data). In the May series, high OI has been seen at the 7,000 call strike, followed by 7,200 and 7,300, indicating a probable resistance zone. Support is seen at 6,500, followed by 6,700, explained Palviya.
ACC Ltd (CMP): ₹2,613
With current price action, the stock has surpassed its four-month "down-sloping" trend line resistance at 2,560 levels on a closing basis. This breakout is accompanied by huge volumes, which signals increased participation. The stock has recaptured its 20, 50, and 100-day SMA and rebounded sharply, which shows strong buying interest around the support zone.The daily and weekly strength indicator RSI has turned bullish, which indicates rising strength.
Investors should buy, hold, and accumulate this stock, which has an expected upside of 2,700-2,750 and a downside support zone of 2,550-2,500 levels, advised Rajesh.
Also Read: Stocks to buy or sell: Cochin Shipyard to RVNL — Sumeet Bagadia recommends five breakout stocks today — May 24
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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