Top Stock Recommendations: Sagar Doshi of Nuvama suggests Aarti Ind, Delhivery, and Dixon Tech Futures for tomorrow

Stock Market News: The domestic benchmark equity indices, the Sensex and the Nifty 50, continued their losing streak for the third day in a row on Tuesday as heavy selling pressure was witnessed in the early trade. However, Nifty 50 recovered swiftly from intraday lows, lessening the ugly tone of the decline.

On Tuesday, the S&P BSE Sensex ended down 456.10 points, or 0.62%, at 72,943.68, while the NSE Nifty 50 closed down 124.60 points, or 0.56%, lower at 22,147.90.

The India VIX surged by more than 12 levels, closing at 12.62, up 1.18% on Tuesday. Sectoral indices, however, were mixed. While the Nifty IT Index fell 2.58%, the Nifty Media Index saw a rise of 1.57%. Interestingly, the Nifty SmallCap Index finished higher than expected, up  by 0.75% outperforming the benchmark indices. 

Also Read: Stock market today: Sensex, Nifty fall for 3rd consecutive session; IT stocks among top drags; mid, smallcaps outperform

The domestic market continued its consolidation pattern for the third day in a row, according to Vinod Nair, Head of Research at Geojit Financial Services. This was due to concerns about global tensions and a decline in the likelihood of a short-term interest rate cut. 

A sharp increase in the dollar index and US bond rates was caused by increased worries that followed better-than-expected US retail sales. The biggest fall was seen in the IT sector, mostly as a result of subdued domestic Q4 results and low US discretionary expenditure estimates affecting earnings, explained Nair.

Today, the stock market will remain closed on account of Ram Navmi Celebrations.

Also Read: World markets today: US stocks mixed as Treasury yields advance

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Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

The Nifty 50 has cooled off by close to 3% from its all-time highs in the past 3 trading days, mainly due to global news flows of geopolitical tensions in the Middle East. IT stocks have been a major drag in this phase as expectations of US Federal Reserve rate cuts are further delayed after the inflation data on Friday. Nifty 50 has re-tested the lower range of the channel, which has been in existence for over 3 months now. For the past two instances, the index has witnessed positive consolidation followed by a new all-time high on the index. Based on this set up, charts indicate that if Tuesday’s low of 22,079 holds, by, Nifty 50 is likely to resume its upside towards 22,420 / 22,610, said Sagar Doshi, Senior Vice President-Research, Nuvama Professional Clients Group.

Bank Nifty Outlook

Bank Nifty has retracted 50% of its recent rally seen in the last 4 weeks, from 45,800 odd to 49,000. The 50% Fibonacci retracement level stands at 47,440 odd, which is acting as a demand zone for the index. An upside towards 47,800 / 49,250 could unfold unless 47,300 is not taken down decisively, added Sagar. 

Also Read: Russia's crude oil exports at 11-month high in April, crosses OPEC target to support prices

Top Stock Recommendations by Sagar Doshi

On top stock recommendations for Thursday, Sagar Doshi has recommended three stocks:

Aarti Industries Ltd (BUY): LCP: ₹747.00; Stop Loss: ₹720.00; Target Price: ₹805.00

According to Sagar, stock has shown renewed momentum as prices give a follow through to the bullish cup and handle pattern. The stock has registered a fresh 52-week high for itself, reinforcing bullish momentum.

Delhivery Ltd (BUY): LCP: ₹454.00; Stop Loss: ₹437.00; Target Price: ₹485.00.

Doshi stated that since February 2024, prices have been consolidating in a band from 485 on the higher side to 420 on the lower side. Momentum indicators are beginning to show signs of bullish momentum buildup, indicating a range breakout.

Dixon Technologies (India) Ltd Futures (April) (SELL): LCP: 7,569.00; Stop Loss: 7,840.00; Target Price: ₹7,040.00

According to Doshi, a lack of follow-up buying after hitting a fresh high, coupled with a swing breakdown, indicates sellers have an upper hand in the stock.

Also Read: Will rising US bond yields cause more FPI outflows from emerging markets? here's what experts say

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.