Stocks to buy: Rajesh Palviya of Axis Sec recommends SBI Life, Indian Bank, Adani Ports shares for next week

Stock market news: The main stock market indices, Sensex and Nifty 50, will remain closed today, (18 April 2025) for 'Good Friday'.

Sensex and Nifty 50, experienced a nearly 2% increase on Thursday, marking their fourth consecutive day of gains as investor sentiment improved following the re-entry of foreign investors into domestic stocks, fueled by hopes for a breakthrough in trade talks between the US and Japan concerning reciprocal tariffs.

The 30-share BSE benchmark Sensex climbed 1,508.91 points, or 1.96%, reclaiming the 78,000 mark. It ultimately closed at 78,553.20, having reached a peak of 1,572.48 points or 2.04% at 78,616.77 during the day. Meanwhile, the Nifty 50 rose by 414.45 points, or 1.77%, reaching 23,851.65.

Vinod Nair, Head of Research at Geojit Investments Limited, noted that a significant rally in large-cap stocks occurred on Thursday, largely fueled by the financial sector, in anticipation of improved margins resulting from alterations in savings deposit interest rates. The resurgence in foreign institutional investor (FII) flows also provided additional positive sentiment, though the longevity of this trend remains questionable.

Still, there is ongoing optimism in the domestic market, supported by expectations of a successful conclusion to US-India trade negotiations and relatively minor disruptions from the US-China trade tensions. Moreover, the easing inflation trend towards more manageable levels is further boosting market sentiment.

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

Nifty 50

With the past couple of weeks' rally, the benchmark index has observed a "V" shape recovery, indicating bullish sentiments. The positive crossover between the 20- and 50-day SMAs reconfirms the short-term trend reversal. The index is strongly positioned above its 100-day SMA (23,395), which signals bullish sentiments on a higher time frame. On the upside, the index is expected to extend this momentum toward the 24,000-24,300 levels. The crucial support zone is located around the 23,500-23,200 levels; hence, any minor correction around this remains a buying opportunity for traders. The daily and weekly strength indicator, RSI, is in positive territory, indicating rising strength.

SBI Life Insurance Company Ltd Cmp: ₹1,607

With the weekly close, the SBI Life Insurance share price has decisively surpassed the past 4-5 months' "multiple resistance" zone of ₹1,550-1,580 levels on a closing basis, indicating a strong comeback of bulls. The stock has formed a trend reversal on the daily and weekly charts, creating higher tops and bottoms. The stock is well-positioned above its 20-, 50-, 100-, and 200-day SMAs, which reconfirms bullish sentiment. The daily, weekly, and monthly strength indicator RSI is in favourable territory, indicating rising strength.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹1,665-1,770 , and its downside support zone is the ₹1,570-1,550 levels.

Indian Bank Cmp: ₹573

On the daily and weekly charts, Indian Bank share price has firmly broken out of a five-month supply zone of 560 levels on a closing basis. This breakout is accompanied by huge volume, which signifies increased participation. Recently, the stock has recaptured its 20, 50, 100, and 200-day SMAs and rebounded sharply, reconfirming bullish sentiment. The daily and weekly strength indicator, RSI, is in favourable territory, indicating rising strength.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹605-630, and its downside support zone is the ₹555-540 levels.

Adani Ports and Special Economic Zone Ltd Cmp: ₹1,260

In the weekly time frame, Adani Ports and Special Economic Zone confirmed a "triangular" breakout at 1,200 levels, which signals a trend reversal. In addition, rising volumes over the past four sessions indicate increased participation. The daily and weekly strength indicator, RSI, is in favourable territory, indicating rising strength. The bullish crossover of the 20-, 50-, and 100-day SMA reconfirms the bullish trend. The daily Bollinger Band buy signal suggests increased momentum.

Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹1,355-1,450, and its downside support zone is the ₹1,220-1,200 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 decision.