BackTop Stock Recommendations: Dharmesh Shah of ICICI Securities recommends buying RIL and LIC Housing Finance today
Top Stock Recommendations: Dharmesh Shah of ICICI Securities has recommended two stocks to buy on Monday - Reliance Industries Ltd (RIL) and LIC Housing Finance Ltd.
PremiumStock Market News: The domestic benchmark indices, the Sensex and Nifty 50 started Monday's trading session higher led by gains in consumer durable, realty, and metal stocks. Nifty 50 touched record high, and crossed earlier level of 22,619, while Sensex hit record high intra-day at 74,647.10 level.
The 30-share BSE Sensex opened higher by 307.22 points or 0.41% at 74,555.44 level while the Nifty 50 opened at 22,578.35 level, up 64.60 points or 0.29%
The chief investment strategist of Geojit Financial Services, Dr. V K Vijayakumar, explained that it's critical to recognise how quickly macroeconomic expectations are shifting. The market went into this year expecting the Fed to lower rates seven times in 2024. After that, it dropped to three, and many now predict that the Fed will only make two cuts this year.
Most experts and market players have been taken aback by how strong the US economy and labor market have been. The mother market is still booming and breaking records even with the prospects for rate cuts being scaled back. This would provide equities markets like India the support they need on a global scale, said Vijayakumar.
The Sensex and Nifty 50 ended Friday's session on a flat note after the Reserve Bank of India (RBI) decided to keep the repo rate at 6.5% for the seventh consecutive policy meeting. The domestic equity market saw its third straight week of gains, mostly driven by financials.
The Midcap index rose 4%, which was the biggest weekly rise in the last seven months. The Small cap index surged 7%. According to analysts, the Nifty Bank witnessed a noteworthy surge of more than 2%, marking its largest weekly advance in the past four months.
On Friday's session, the Sensex witnessed modest gains and touched a fresh lifetime high of 74,248 following the RBI MPC announcement. Meanwhile, despite ending on a flat note, the Nifty 50 ended the week on a higher note and also claimed a new record high.
S&P BSE Sensex and Nifty 50 both saw weekly gains of around 0.8%.
The Nifty 50 ended Friday's session at 22,513.70, down 0.95 points or 0%, while the 30-share BSE Sensex closed higher by 20.59 points or 0.03% at 74,248.22 level.
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Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
The breakout from one month consolidation (22,525-21,710) helped the index clock a fresh all-time high of 22,619. Going ahead, we reiterate our positive stance and expect Nifty 50 to head towards 23,400 by the general election outcome, while the short-term milestone is placed at 22,900 in the coming weeks. The index is showing resilience despite global volatility, signalling a pre-election rally is brewing up in tandem with historical election-year price-behaviour. Thus, any temporary breather should be capitalised as an incremental buying opportunity as strong support is placed at 22,100, said Dharmesh Shah, Vice President, ICICI Securities.
Shah's positive bias is further validated by the following observations:
A. The Bank Nifty is expected to resolve out of three-month consolidation (48,600–44,450) that would further strengthen the leadership of BFSI in the next leg of the up move. As we expect, Bank Nifty to head towards 49,800, while strong support is placed at 47,500, which we expect to hold.
B. The current up move is backed by broad-based participation as the percentage of stocks above 50days ema rebounded strongly from its bearish extreme (20% levels) to the current reading of 70%.
C. The midcap index posted a faster retracement of the five-week corrective phase in three weeks and recorded new highs, indicating the continuation of the structural uptrend, while the small cap index is just 2% away from its all-time high.
D. Major industrial commodities like aluminium and copper are coming out of prolonged base formation; they were up 4%-6% last week. This supports a bullish stance on metal.
Top Stock Recommendations:
Buy Reliance Industries Ltd (RIL)in the range of ₹2,920–2,958 for the target of ₹3,270 with a stop loss of ₹2,790.
Buy LIC Housing Finance Ltd in the range of ₹628–644 for the target of ₹720 with a stop loss of ₹599.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 05/04/2024 (preceding date) or have no other financial interest and do not have any material conflict of interest.
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.
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