The Indian stock market continues its bullish trend, with both the Sensex and Nifty 50 indices reaching all-time highs. This surge in the market is fueled by positive momentum in global equities, further amplified by the US Federal Reserve’s recent interest rate cut. Investors closely watch the developments, while stock market experts offer key stock picks that could benefit from the ongoing rally.
Market Overview
The Sensex and Nifty 50 have been climbing to record levels, bolstered by global market cues. The US Federal Reserve’s larger-than-expected interest rate cut last week has injected optimism into markets worldwide, creating an upward push in Indian indices. The rise in cash market volumes on the NSE, which saw a 15% increase on Thursday compared to the previous day, underscores the bullish sentiment.
Despite this positivity, the broader market indices finished the day in the red. On Thursday, the advance-decline ratio remained almost flat, settling at 0.70:1, indicating mixed investor sentiment across various sectors.
Rajesh Palviya’s Key Stock Picks
Rajesh Palviya (Senior Vice President of Technical and Derivatives Research at Axis Securities) believes the positive outlook for Indian markets is set to continue. According to Palviya, the Nifty 50 is on track to reach 26,700, thanks to the formation of higher tops and bottoms on the charts—a classic sign of an uptrend.
Palviya’s confidence stems from the Nifty 50 maintaining strong support above the crucial 20-day SMA of 25,405. The expert pointed out that the index has already touched a new all-time high of 26,250, with the momentum showing no signs of slowing down. He predicts that Nifty 50 could extend its upward move, potentially reaching levels between 26,500 and 26,700 in the coming sessions.
The key support levels to watch for Nifty 50 are in the range of 26,000 to 25,800. If the index falls below this range, it could signal the start of a correction, but for now, the bulls remain in control.
Stocks to Buy Today
Rajesh Palviya has recommended three stocks that investors should consider buying today—Elecon Engineering, Apollo Tyres, and GAIL India. According to Palviya, these stocks are positioned for potential upside due to favorable technical indicators, making them attractive for both short-term traders and long-term investors.
Elecon Engineering
Elecon Engineering has been making waves on the charts, recently breaking out from a “rounding bottom” pattern at ₹690 on a closing basis. This technical breakout, supported by strong volumes, suggests that investor interest in the stock is growing. With the stock trading well above its 20, 50, 100, and 200-day moving averages, Palviya believes the stock is in a strong bullish trend. The daily Bollinger Bands also indicate a buy signal, further reinforcing the stock’s upward momentum. Elecon Engineering is expected to rise to ₹755, with a potential upside target of ₹800. On the downside, the stock has support between ₹666 and ₹650, which investors should monitor closely.
Apollo Tyres
Another stock on Palviya’s radar is Apollo Tyres, which recently broke out from multiple resistance levels at ₹560. The breakout has been accompanied by significant volumes, suggesting strong participation from investors. Technical indicators like the daily and weekly Bollinger Bands are signaling a buy, while the stock has also recaptured key moving averages, including the 20, 50, and 100-day SMAs. The potential upside for Apollo Tyres ranges between ₹625 and ₹700, while the support zone lies between ₹545 and ₹528. Investors looking to take advantage of this momentum could consider buying and accumulating the stock at current levels.
GAIL India
GAIL India has shown strong resilience in recent trading sessions, rebounding sharply from its support zone around ₹210. Over the last five trading sessions, the stock has seen increased trading volumes, indicating a rapid recovery from recent lows. The daily relative strength index (RSI) is in favorable territory, pointing to rising strength in the stock. Palviya believes GAIL India is well-positioned for further gains, with an upside target between ₹240 and ₹255. On the downside, the stock has support between ₹225 and ₹220, which could provide a safety net for investors in case of market volatility.
Investor Sentiment on Reliance Industries
In a related poll, investors have been asked about their expectations for Reliance Industries’ share price following the recent bonus issue announcements. The stock has trended down since the bonus issue, prompting some concerns about near-term performance. As of the latest results, a significant number of investors believe that pressure on the stock could continue, though there remains a split in opinion on whether the stock will recover in the short term.
Outlook for the Indian Stock Market
As the Indian stock market rides this wave of global optimism, traders and investors alike are looking for opportunities in stocks showing technical strength. With the Nifty 50 and Sensex both trending higher, supported by global tailwinds and strong domestic fundamentals, the short-term outlook remains positive.
The broader market’s mixed performance, as indicated by the advance-decline ratio, suggests that investors should remain cautious about sector-specific movements. While blue-chip stocks like those recommended by Palviya are likely to benefit from the current uptrend, the volatility in smaller stocks and sectors could continue.
For now, the bulls have control of the market, but investors should keep an eye on key technical levels and support zones to manage their risks in case of a sudden shift in market sentiment.
