Stocks in focus: Rajesh Palviya of Axis Securities recommends India Glycols, IOC, and Vinati Organics today

Stock Market News: Though gains were restrained by a weakness in heavyweight financials, the domesticbenchmark indices, the Sensex and the Nifty 50, saw a little increase on Friday as investors bought into the drop following losses in the previous few days.

As of 9:41 IST, the Sensex gained 0.4% to 80,358.63, while the Nifty 50 increased 0.47% to 24,522.3.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that the Indian bull market's capacity to scale any obstacle is what makes it special. The market disregarded any worries about the US mother market correction, the budget, and the next elections. The US economy's hopes for a gentle landing are further strengthened by the Q2 GDP figures, which came in 2.8% higher than anticipated.

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

In the last 4-5 sessions, the benchmark index has seen profit booking from its recent highs of 24,854 levels. On the hourly time frame, the index has formed a pattern of lower tops and lower bottoms, indicating a short-term trend reversal. On the upside, the crucial resistance is around 24,600 levels. A sustainable move above this could lead to momentum towards 24,800-25,000 levels. On the downside, the 24,200-24,150 levels are crucial, and a close below this could lead to profit booking towards 24,000-23,700 levels, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.

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

India Glycols Ltd (CMP: ₹1,176)

The stock is in a strong uptrend across all time frames, forming a series of higher tops and bottoms. Additionally, the stock confirmed a "rounding bottom" pattern breakout at 1,070 levels. This breakout, accompanied by high volume, indicates increased participation. The stock is well above its 20, 50, 100, and 200-day SMAs, all of which are rising with the price, reinforcing the bullish trend. The daily, weekly, and monthly RSI is positive, indicating rising strength.

“Investors should buy, hold, and accumulate this stock, expecting an upside of 1,260-1,385 with a downside support zone of 1,085-1,000 levels,” said Rajesh.

Indian Oil Corporation Ltd (IOC) (CMP: ₹177)

Today's strong gains have confirmed a six-month "Descending Triangle" breakout at 174 levels on a closing basis. This breakout, backed by high volumes, signifies rising participation. Buying support was observed around the 20, 50, and 100-day SMA support zone, confirming the bullish trend. The daily and weekly "Band Bollinger" buy signals indicate increased momentum and the daily and weekly RSI is positive, showing rising strength.

“Investors should buy, hold, and accumulate this stock, expecting an upside of 190-200 with a downside support zone of 167-162 levels,” advised Palviya.

Vinati Organics Ltd (CMP: ₹2,065)

On the daily time frame, the stock has confirmed a "Flag" continuation pattern breakout at 2,000 levels on a closing basis. It has also surpassed the "multi-month resistance zone" at 2,020 levels with high volumes, indicating increased participation. The stock has recaptured its 20-day SMA (1,928) and rebounded sharply. The daily and weekly "Band Bollinger" buy signals indicate increased momentum and the daily and weekly RSI is positive, showing rising strength.

“Investors should buy, hold, and accumulate this stock, expecting an upside of 2,200-2,350 with a downside support zone of 2,000-1,950 levels,” said Rajesh.

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.