Indian stock market: The Indian stock market indices, Sensex and Nifty 50, concluded the trading session with a mixed performance, on May 6. Shares of specific heavyweight companies such as Titan, SBI, and Reliance Industries exerted notable downward pressure on these primary indices.
The Sensex ended the day with a slight increase of 17 points, or 0.02 percent, closing at 73,895.54, whereas the Nifty 50 concluded with a decrease of 33 points, equivalent to 0.15 percent, closing at 22,442.70.
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Despite favorable international indicators, domestic market indices concluded the session with subdued performance, driven by persistent worries regarding overvaluation without fresh positive triggers and amid a mixed bag of Q4 earnings updates. The Indian stock market seems to have factored in a majority of the favorable aspects, and analysts anticipate a period of sideways movement until the election results are announced. There’s a sentiment among some experts that profit-taking may occur post the election outcome.
“Nifty witnessed a gradual decline after opening higher amid high volatility. The index closed with a marginal loss of 33 points at 22443 levels. Sector-wise it was mixed with buying seen in Realty, IT & FMCG. PSUs especially Banking & NBFC were under pressure after RBI proposed stricter lending rules. Domestic equities after opening higher gave up their entire gains amid rising volatility and continuous selling by FIIs. In the last month, FIIs have sold ~ ₹39,000 crore worth of stocks amid uncertain global macros. Further, the surge in India VIX by over 70% in the last eight trading sessions from around 10 to its 52-week high near 17 level, indicating increasing nervousness among investors due to the ongoing global uncertainties and Lok Sabha election outcome next month. Hence, markets are likely to remain in a broader range with stock-specific action in the near term,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Brokerage firm Motilal Oswal recommends below listed three stocks to buy this week –
Stocks to buy
ICICI Bank: Buy at ₹1145 | Target Price: ₹1220 | Stop Loss: ₹1111
ICICI bank is in overall uptrend and forming higher lows on monthly scale from past six months. On weekly scale it gave range breakout after nine weeks and holding at higher zones. On daily scale the stock is consolidating above breakout zone and formed a bullish candle. It is holding above its It is holding well above its 20DEMA and good buying is visible across Private banks. Momentum indicator Relative Strength Index (RSI) is also on the verge of breakout which indicates momentum to continue in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1111 levels on closing basis for a new high target towards 1220 zones.
ABB India: Buy at ₹6970 | Target Price: ₹7500 | Stop Loss: ₹6700
ABB is in strong uptrend and trading at life time high territory with strong outperformance within Capital space. Technically the stock is forming higher lows from past three months and gave range breakout on weekly scale after five weeks. On daily scale the stock is forming higher lows from past few sessions and base of the stock is shifting higher. It is holding well above its short term moving averages and momentum oscillator Relative Strength Index (RSI) is also moving higher which indicates momentum to continue in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 6700 levels on closing basis for a new high target towards 7500 zones.
Also read: NMDC up for third straight day, touches 14-year high after April business update
NMDC: Buy at ₹268 | Target Price: ₹290 | Stop Loss: ₹258
NMDC is strong uptrend within Metal space and trading at multi months high territory. Technically the stock is forming higher lows from past eight weeks and base of the stock is shifting higher. On daily scale the stock gave Inverse Head & Shoulder pattern breakout above 255 zones and gradually moving higher. Momentum indicator Relative Strength Index (RSI) is also moving higher which indicates momentum to continue in coming sessions. The stock is trading above its short term moving averages and good buying interest is visible in metal stocks. Thus looking at the overall chart structure recommending to buy the stock with keeping stop loss below 258 levels on closing basis for a target towards 290 zones.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 06 May 2024, 06:44 PM IST