Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, recommended three stocks to buy, TD Power Systems Ltd, Granules India Ltd, and Westlife Foodworld Ltd. Her insights come as the domestic benchmark indices, the Sensex and the Nifty 50, closed higher on Wednesday, driven by gains in consumer stocks and heavyweight Reliance Industries.

This positive movement in the stock market has been further supported by a rise in domestic IT stocks, fueled by hopes of potential rate cut hints from the Federal Reserve minutes.

The S&P BSE Sensex rose by 0.36%, reaching 74,221.06, while the blue-chip NSE Nifty 50 climbed 0.31% to 22,597.8 points. On the same day, the India VIX, a gauge of market volatility, fell by 1.6% to 21.5, indicating minimal volatility in the Indian stock market. This reduction in volatility, coupled with a strong medium-to-long-term outlook, has shifted investors’ focus from election-related concerns to stock fundamentals.

According to a CNBC news report, the Federal Reserve’s recent policy meeting minutes revealed that members were uncertain about the timing of interest rate cuts due to increasing concerns about inflation. The minutes from the Federal Open Market Committee’s April 30-May 1 meeting indicated that policymakers lacked confidence in their ability to proceed with interest rate cuts, reflecting their cautious approach amid inflationary pressures.

Parekh’s analysis of the Nifty 50 suggests that the index has experienced a steady rise over the past 3-4 sessions, reaching the 22,600 zone with a positive bias. She notes active participation from broader markets, which has contributed to this upward movement. Parekh anticipates that the Nifty 50 can continue its positive momentum, targeting the 22,900 level in the coming days, with 22,300 as an important support zone.

Regarding the Bank Nifty, Parekh observed some profit booking, causing it to slip towards the support zone of 47,400 levels before recovering to end near the 47,800 zone. This recovery has helped restore market sentiment. Parekh emphasizes that for the Bank Nifty to establish further conviction for a rise to 49,600 and 49,900 levels, it must decisively move past the 48,300 zone. She identifies the daily support and resistance levels for Bank Nifty at 47,500 and 48,200.

Parekh advises buying TD Power Systems Ltd at ₹352.10 with a stop loss of ₹345 and a target of ₹368. She also recommends Granules India Ltd, suggesting a buy at ₹426.80 with a stop loss of ₹418 and a target of ₹447. Westlife Foodworld Ltd as a buy at ₹866.90 with a stop loss of ₹848 and a target of ₹900.

The overall sentiment in the market appears positive, supported by the performance of key indices and specific stock recommendations. With the medium-to-long-term outlook remaining solid, investors are likely to find opportunities in the stocks highlighted by Parekh. As the market continues to react to domestic and global cues, including the Federal Reserve’s stance on interest rates, the focus on stock fundamentals will be crucial for navigating the market landscape.