Stocks in focus: Rajesh Palviya of Axis Securities recommends SBI Life, Orient Cement, and TCS today

Stock Market News: The domestic benchmark indices, the Sensex, and the Nifty 50, fell off their opening-day record highs on Friday as gains in Infosys were overshadowed by widespread profit booking, despite the company exceeding quarterly profits projections and raising its full-year revenue prediction.

As of 9:51 IST, the Sensex fell 0.21% to 81,174.93 points, while the Nifty 50 was down 0.35% to 24,714.15.

A notable current trend in the market, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, is the underperformance of the overpriced overall market and the outperformance of the reasonably valued largecap area. This bodes well for the rise to continue without the market overheating. The overpriced PSU sectors, such as railways and defense, may continue to go downward.

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

The benchmark index is in a strong uptrend forming a series of higher tops and bottoms indicating bullish sentiments. The index has also registered an all-time high at the 24,837 level which reconfirms a bullish trend. We expect this momentum to extend towards 25,000-25,500 levels in upcoming weeks. On the flip side, the significant support is placed around 24,500-24,200 levels, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.

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

SBI Life Insurance Company Ltd (CMP: ₹1,651)

The stock is in a strong uptrend forming a series of higher tops and bottoms. On the weekly time frame, the stock has confirmed " rounding bottom formation " at 1,570 levels on a closing basis indicating a resumption of the prior uptrend. Huge rising volumes signify increased participation. The daily and weekly strength indicator RSI has turned bullish, showing rising strength. The weekly and monthly "band bollinger" buy signal signifies increased momentum.

Investors should buy, hold and accumulate this stock with an expected upside of 1,700-1,800 with downside support zone of 1,600-1,570 levels.

Orient Cement Ltd (CMP: ₹326)

The stock is in a strong uptrend forming a series of higher tops and bottoms. With today's price action, the stock has confirmed the "pennant" - a continuation pattern indicating the resumption of the prior uptrend. Past couple of months rising volumes signify increased participation in the rally. The stock is well placed above its 20, 50, 100 and 200 levels which reconfirms the bullish trend. The daily, weekly and monthly strength indicator RSI has turned bullish, showing rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of 340-355 with downside support zone of 300-290 levels.

Tata Consultancy Services Ltd (TCS) (CMP: ₹4,297)

On the daily chart, the stock has confirmed " rounding bottom formation" at 4,255 levels on a closing basis indicating bullish sentiments. Recently the stock has recaptured its 20, 50, 100 and 200 day SMA and rebounded sharply representing the buying force near the support zone. This breakout is accompanied by huge volumes indicating rising participation. The daily, weekly and monthly strength indicator RSI has turned bullish, showing rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of 4,440-4,550 with downside support zone of 4,230-4,150 levels.

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.