Stock in focus: Rajesh Palviya of Axis Securities recommends Manappuram Finance, Century Plyboards, and RIL today

Stock Market News: The key domestic equity indices, the Sensex and the Nifty 50, opened Friday's trading at new all-time highs. Reliance Industries, the oil-to-telecom behemoth that has led this week's advances, was once again in the spotlight following the announcement of tariff hikes by its telecom subsidiary Jio.

In the initial trading, the Nifty 50 started up 41.40 points, or 0.17%, at 24,085.90, while the Sensex rose 214.40 points, or 0.27%, to 79,457.58.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that the Sensex might reach 80,000 due to market momentum. The latest rally's positive tendency is that it is being driven by largecaps with solid fundamentals, such as RIl, Bharti, and the top private sector banks. But since the market is in an overbought area and DIIs are booking gains, corrections might occur at any time. It's important to notice that during the previous three years, the DIIs have consistently prevailed over the FIIs in this tug-of-war.

Also Read: Reliance share price hits all-time high; m-cap tops ₹21 lakh crore for first time

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

The benchmark index has registered an all-time high at 24,087 representing bullish sentiments. The index is in a strong uptrend forming a series of higher tops and bottoms formation. The index is well placed above its 20, 50, and 100-day SMA and these averages are inching up along with the price rise which confirms the bullish trend. We expect this momentum to extend towards 24,300-24,500 levels in upcoming weeks. The short-term support zone is placed around 23,800-23,500 levels, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.

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

Manappuram Finance Ltd (CMP: ₹210)

With a strong close of 210 levels, the stock has registered a 7% up move. This buying momentum was accompanied by huge volumes indicating increased participation. The positive crossover of 20 and 100-day SMA signifies bullish sentiments. On the daily chart, the stock has confirmed a "multiple resistance" zone breakout at 204 levels on a closing basis. The weekly "band bollinger" buy signal indicates increased momentum. The daily and weekly strength indicator RSI has turned bullish which shows rising strength.

“Investors should buy, hold and accumulate this stock with an expected upside of 230-255 with a downside support zone of 204-196 levels,” said Rajesh.

Also Read: Jio tariff hike impact: Reliance, Bharti Airtel jump, Vodafone Idea share falls 2.5%

Century Plyboards India Ltd (CMP: ₹753)

On the daily chart, the stock has confirmed "Cup & Handle" formation at 736 levels on a closing basis. This breakout is accompanied by huge volumes indicating increased participation. The stock has recaptured 20, 50, 100 and 200-day SMA and rebounded sharply. The daily and weekly strength indicator RSI has turned bullish which shows rising strength.

“Investors should buy, hold and accumulate this stock with an expected upside of 790-820 with a downside support zone of 730-720 levels,” advised Palviya.

Also Read: Stocks to buy or sell: Route Mobile to Indo Amines — Sumeet Bagadia recommends buying five breakout stocks today

Reliance Industries Ltd (RIL) (CMP: ₹3,058)

Since Feb'24, the stock has been under strong consolidation within the "down-sloping channel" formation. However, with the past couple of sessions' up move, the stock has observed a consolidation breakout at 3025 levels. Huge rising volumes signify increased participation. The stock has recaptured 20, 50, 100 day SMA and rebounded sharply from 2900-2870 levels which remains a crucial support zone. The daily and weekly "band bollinger" buy signal indicates increased momentum. The daily and weekly strength indicator RSI has turned bullish which shows rising strength.

“Investors should buy, hold and accumulate this stock with an expected upside of 3,130-3,250 with a downside support zone of 3,000-2,970 levels,” said Rajesh.

Also Read: Indian govt bonds to enter JP Morgan Bond index from today; Here’s what to expect

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.