Nifty 50 closed 469 points, or 2.05 per cent, higher at 23,290.15, with only two stocks on June 7.
‘’The RSI has been hovering near the oversold zone and indicated a trend reversal to signal a buy with much upside potential visible from current levels.
The stock has been underperforming for quite some time and currently, with the chart looking attractive, and risk-reward favorable, we suggest to buy the stock for an upside target of 1110 keeping the stop loss of 917,'' added Parekh.
GHCL:Buy GHCL at ₹494; Upside Potential of 17.40 per cent at Target Price ₹580; Stop Loss: ₹470 at 4.90 per centAt a CMP of ₹494, Parekh has set the target price for GHCL at ₹580 and sees a potential upside of 17.40 per cent on the stock.
Currently, with risk-reward looking favorable, we suggest to buy the stock for an upside target of 580 keeping the stop loss of 470,'' she added.
Buy or sell stocks: Domestic equity benchmarks Sensex and Nifty 50 extended gains for the third straight day and ended at their fresh closing highs in the previous session after the Reserve Bank of India (RBI) maintained a status quo on the repo rates and policy stance in its monetary review meeting while revising the gross domestic product (GDP) estimates for FY25 upwards.
The NSE benchmark logged its best week since early December, while the Sensex recorded its best week in nearly two years. The recovery rally on Wednesday and Thursday came as domestic buying overpowered foreign sales, and clarity emerged regarding PM-elect Modi and his allies coming to power.
Also Read: Food inflation bites Indian economy: RBI sees uptick in vegetable prices; monsoon key determinant of relief
The Nifty added 3.4 per cent this week, while the Sensex rose 3.7 per cent, recouping all losses made on Tuesday after Prime Minister Narendra Modi's National Democratic Alliance (NDA) won the general elections by a surprisingly slim majority, defying the bullish predictions of all exit polls.
The Sensex hit its fresh all-time high of 76,795.31 during the session before ending at 1,619 points, or 2.16 per cent, higher at 76,693.36 on Friday, with all components in the green. Nifty 50 closed 469 points, or 2.05 per cent, higher at 23,290.15, with only two stocks on June 7.
Stocks to buy
Coming to the stocks that investors can buy, Vaishali Parekh recommended the following two technical picks:
Buy Tata Motors at ₹996; Upside Potential of 14.90 per cent at Target Price ₹1,100; Stop Loss: ₹917 at five per cent
At a current market price (CMP) of ₹996, Parekh has set the target price for Tata Motors at ₹1,100 and sees a potential upside of 14.90 per cent on the auto stock. ‘’The stock has indicated descending channel breakout above 947 levels and has moved past the significant 50EMA level of 960 zone to improve the bias,'' said the Prabhudas Liladher expert on Tata Motors.
‘’The RSI has been hovering near the oversold zone and indicated a trend reversal to signal a buy with much upside potential visible from current levels. The stock has been underperforming for quite some time and currently, with the chart looking attractive, and risk-reward favorable, we suggest to buy the stock for an upside target of 1110 keeping the stop loss of 917,'' added Parekh.
GHCL:
Buy GHCL at ₹494; Upside Potential of 17.40 per cent at Target Price ₹580; Stop Loss: ₹470 at 4.90 per cent
At a CMP of ₹494, Parekh has set the target price for GHCL at ₹580 and sees a potential upside of 17.40 per cent on the stock. ‘’The stock has recovered from the low made near 434 zone and has recently formed a double bottom pattern taking support near 475 zone,'' said Parekh on GHCL.
‘’A pullback witnessed has improved the bias with the RSI also indicating a trend reversal to signify strength and can carry on with the positive move further ahead. Currently, with risk-reward looking favorable, we suggest to buy the stock for an upside target of 580 keeping the stop loss of 470,'' she added.
Where is Nifty 50 headed?
Analysts said that the Nifty 50 index moved up significantly after a flat closing in the previous trading session. The short-term trend looks very positive as the index closed near an all-time high.
‘’Going forward, the market remains a buy on dips as long as 23,000 is not broken. On the higher end, the index might move towards 23,500-23,600. On the lower end, profit booking might occur only below 23,000,'' said Rupak De, Senior Technical Analyst, LKP Securities.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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