Top Stock Recommendations: Osho Krishan of Angel One suggests buying PFC and NHPC today

Stock Market News: The Indian stock market indices, Sensex and Nifty 50, traded higher on Thursday amid mixed global cues after the US Federal Reserve monetary policy announcement.

The BSE Sensex gained over 120 points to trade above 74,600 level, while the Nifty 50 was up 0.11% above 22,600 level. The gains in the market were broad based as the Nifty Midcap 100 and the Nifty Smallcap 100 indices also traded higher.

Among sectoral indices, Nifty Pharma, Nifty Auto, Nifty Financial Services, Nifty FMCG and Nifty Metals were in the green, while Nifty IT and Nifty Realty declined.

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Nifty 50 Outlook by Osho Krishan

It has been a roller coaster session for the participants, as the whole rosy setup with across-the-board buying ended on a rough note on April 30. 

“However, considering the overbought parameters, the Bank Nifty weekly settlement, and the mid-week holiday, such disruptions could be digested. Though a continuation might trigger some caution in the short term,” said Osho Krishan, Sr. Analyst – Technical & Derivatives, Angel One Ltd. 

From a technical standpoint, he is of the view that the Nifty index looks subtle, hovering above its 20 DEMA and nothing significant has changed on the levels front from the previous session. 

“Therefore, traders are advised to maintain a positive stance and view dips as potential buying opportunities, instilling a sense of optimism. In this scenario, immediate support is likely to shift higher towards the 22,500 mark, followed by 22,400, coinciding with 20 DEMA,” Krishan said. 

On the contrary, the lifetime high zone around 22,775 - 22,800 is expected to serve as immediate resistance before the index heads toward the 23,000 mark, he added.

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“As we advance, the sustenance of broader markets is likely to pivot on global developments; hence, keeping a close track of the global peers is prudent. Simultaneously, identifying thematic movers could play a significant role in outperforming the markets, and refraining from aggressive trades until uncertainty subsides is strictly advisable,” he said.

Top Stock Recommendations For Thursday by Osho Krishan

On stocks to buy today, Osho Krishan recommended two stocks - Power Finance Corporation (PFC) and NHPC.

PFC | Buy | TP: ₹470

PFC has seen a robust move of over 6% on the back of strong volumes. Importantly, the counter has spurt from its 21 DEMA, signifying a strong risk-reward ratio at the current zone. The bullish gap of 416 is likely to cushion any blip, while the counter seems poised to reclaim its lifetime highs in the comparable period, Krishan said. 

Also, the counter seems buoyant, and a sustained breakout would likely trigger fresh traction from a broader view.

He recommends to buy PFC around ₹435-430 keeping a stop loss of ₹416 for a potential target price of ₹470.

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NHPC | Buy | TP: ₹102-105

NHPC has seen strong traction in the last couple of trading sessions as it resurged from its 21 DEMA to witness an ‘Inverted Head & Shoulder’ pattern breakout on the daily chart. Also, in the last session of the breakout, a notable increase in volumes was seen, adding to the bullish quotient. On the oscillator front, MACD and RSI both have showcased a positive crossover, suggesting strong momentum in the comparable period.

Hence, Krishan recommends to buy NHPC around RS 95-94 keeping a stop loss of ₹89 for a potential target of ₹102-105.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.