BackTop Stock Recommendations: Osho Krishan of Angel One suggests buying Great Eastern Shipping Co, and NHPC today
Top Stock Recommendations: Osho Krishan, Sr. Analyst, Technical & Derivatives of Angel One, recommends buying Great Eastern Shipping Company Ltd, and NHPC Ltd today.
PremiumStock Market News: The domestic benchmark equity indices, the Sensex and the Nifty 50 began Thursday's session on a weak note on the backdrop of weak global cues.
The Nifty 50 opened down 67.60 points, or 0.30 percent, at 22,637.10, while the Sensex fell 225.37 points, or 0.30 percent, at 74,277.53. SBI, ONGC, Hindalco, ICICI Bank, and Kotak Mahindra Bank were among the top Nifty gainers; Tata Steel, Titan Company, Power Grid Corp, Dr. Reddy's Labs, and JSW Steel were among the losers.
Increased volatility is expected on June 3 and 4, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Purchasing decisions will be straightforward even following a price increase if the exit polls show a distinct trend that is advantageous to the market.
A significant worry is the increase in US bond rates, which has caused the 10-year yield to surpass 4.6%. The prices of largecaps may drop even more if this leads to the FII selling continuing.
There is a temporary aberration when the reasonably valued largecaps become weak while the highly valued mid and smallcaps stay robust. This brief anomaly can be advantageous for long-term investors.
Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One
The Indian stock markets began on a grim note due to the uncertainty seen in the previous few sessions regarding the crucial event of the Exit poll. The benchmark index witnessed a decent gap-down opening and stayed at lower levels throughout the session. Even the in-between attempt to recover was decisively sold into, and the Nifty 50 index concluded the session around the 22700 zone, shedding 0.80 percent, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
There hasn't been a significant price change for the benchmark index, but the fourth consecutive session of sell-off with the advance-decline ratio favoring the bears certainly indicates a weakening of the bullish stance. From a technical standpoint, The Nifty has breached the neckline of the recent breakout and is now heading towards the mean of the 'Rising channel' at 22,600, followed by the 20-day SMA at 22,500, which is to be considered as the crucial support level. On the higher end, the bearish gap of 22,825-22,860 is to be seen as an intermediate hurdle, while the sturdy wall stays at the 23,000 mark, explained Krishan.
Lately, our markets have appeared to be catching up with the US markets, and hence, we should keep a close eye on their developments. In the meantime, given the persistence of the uncertainty, it is advisable to avoid being aggressive and wait for the volatility to subside. Also, maintaining firm risk management is prudent in the current challenging market scenario, added Osho.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 30
Top Stock Recommendations For Thursday by Osho Krishan
On stocks to buy today, Osho Krishan recommended two stocks - Great Eastern Shipping Company Ltd, and NHPC Ltd.
Great Eastern Shipping Company Ltd
Great Eastern Shipping Co has been hovering in the cycle of higher highs – higher lows, hovering above all its EMAs on the daily chart. The counter has seen decent traction in the last couple of trading sessions, from its 50 DEMA on the daily, which historically has provided strong support to the counter. This indicates a strong potential for growth. Meanwhile, on the oscillator front, the 14-period RSI has witnessed a positive crossover, portraying a bullish quotient, and a sustained move would likely trigger fresh traction to propel the counter northwards into uncharted territory from a broader term view.
“Hence, we recommend to BUY Great Eastern Shipping Co around ₹1,050-1,040 keeping a stop loss of ₹990 for a potential target of ₹1,120," said Osho.
NHPC Ltd
NHPC has been in a secular uptrend, hovering above all its significant EMAs on the daily time frame, indicating inherent strength. At present, the counter is at its previous swing low, coinciding with the 21 DEMA, which is likely to augur well for the buyers in the near period. On the oscillator front, MACD and RSI both have showcased a positive crossover, suggesting strong momentum in the comparable period. And from the risk-reward point of view, the counter is placed in a lucrative zone and seems poised to continue its upward march.
“Hence, we recommend to BUY NHPC around ₹100-98 keeping a stop loss of 92 for a potential Target of ₹112," said Krishan.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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