Stocks in focus: Ruchit Jain of 5paisa recommends buying Hindalco Industries, and Shriram Finance today

Stock Market News: Tuesday's opening of the domestic benchmark indices was positive due to the Asian and US market rallies. Experts predicted that the rise may drive markets to record highs.

The BSE Sensex jumped by 297.86 points, or 0.37%, to 80,722.54 points, while the Nifty 50 index began with a gain of 76.25 points, or 0.31%, at 24,648.90 points.

Global signals are still favourable, which is creating a bullish tone for the Indian markets as well, stated Ajay Bagga, Banking and Market Expert in an ANI news report. After a run of eight straight days of gains, the US market value has now recovered more than USD 3 trillion from its August lows. Big clouds have cleared from the risk horizon as long as international tensions remain restrained and Japanese Yen carry trades resume.

Bagga believes that this momentum would propel Indian markets to fresh all-time highs. Over the past week, significant inflows into US and international equities funds have been recorded, which supports the markets.

Market Review and Outlook - Ruchit Jain

The index traded in a narrow range yesterday, with individual stocks showing more significant movements. IT stocks maintained their upward trajectory, while private sector banking stocks performed poorly, limiting the overall index gains. Nifty 50 has now recovered by 61.8 percent from the recent decline, approximately at 24,630, which presents an immediate obstacle to overcome. A sustained breakthrough here could indicate a potential move towards 25,000 again in the short term. Conversely, the immediate support in case of any declines will likely be around 24,400, said Ruchit Jain, Lead Research Analyst at 5paisa.

Traders are advised to trade with a positive bias and look for buying opportunities in sectors which are showing signs of outperformance.

In Monday's session, the Nifty Bank index showed weaker performance compared to the Nifty 50 index due to pressure on private sector banks. It remains within the 49,650-50,850 range and a breakout beyond this range is necessary for a clear directional movement. Traders should consider seeking trading opportunities in this index only after a breakout occurs on either side of the range.

Stocks in focus today - Ruchit Jain

On stocks in focus on Tuesday, Ruchit Jain recommends Hindalco Industries Ltd, and Shriram Finance Ltd.

Hindalco Industries Ltd

The stock recently went through a corrective phase, but we did not observe any high volumes during the corrective phase. This down move just seemed to be a correction within an uptrend, and the price action has turned bullish again with RSI also giving a positive crossover.

It is advisable to buy the stock in the range of ₹655-650 for potential target around ₹680 and ₹696. The stoploss on long positions should be placed below ₹630.

Shriram Finance Ltd

The stock has given a breakout above its recent swing high thus indicating a resumption of the uptrend. The RSI too is hinting at a positive momentum and the prices have continued the higher top higher bottom structure. Traders can buy the stock in the range of ₹3,075-3,050 for potential target of ₹3,275 and ₹3,400. The stop loss on long positions should be placed below ₹2,850.

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.