Best Stock Picks for Today: Investment Recommendations for May 2
According to Bajaj Broking Research, investors should consider Eternal (Zomato) and KEI Industries as top stock picks for today. The report also provides insights into the Nifty and Bank Nifty indices, highlighting the cautious yet positive market sentiment amid ongoing geopolitical tensions and tariff discussions. As the market approaches a busy week filled with significant economic data releases, analysts suggest that the current consolidation phase may present a buying opportunity for quality stocks.
Nifty Index Outlook
The Indian equity benchmarks have shown a positive but cautious trend over the past week, influenced by geopolitical tensions and tariff-related developments. U.S. Treasury Secretary Scott Bessent noted that several major trading partners, including India, have proposed effective measures to avoid U.S. tariffs, which has improved market sentiment. Analysts predict that the Nifty index will continue to consolidate within the range of 24,550 to 23,800. The lower end of this range corresponds to last weekโs low, while the upper end represents a key retracement level.
The current consolidation is seen as a necessary adjustment to alleviate the overbought conditions that have developed following a strong rally. As the market progresses through the Q4 earnings season, stock-specific movements are expected to gain prominence. Overall, the market structure remains positive, and analysts believe that this consolidation phase could be an opportune time to invest in quality stocks, with a target of reaching the December 2024 high of 24,850 in the coming weeks. Investors are also advised to keep an eye on earnings reports from major tech companies, including Apple, Microsoft, and Amazon, which are set to be released this week.
Bank Nifty Analysis
The Bank Nifty index has experienced a consolidation phase within a 2,000-point range over the last six sessions, following a robust rally of 5,500 points, or 11%, in the preceding period. This rally was supported by strong institutional buying in leading banking stocks and a notable increase in foreign institutional investor (FII) inflows, indicating a risk-on market sentiment. The positive outlook has been further bolstered by expectations of interest rate cuts and favorable earnings reports from large-cap private banks.
A sustained move above the recent high of 56,098 could pave the way for further gains toward the 56,800 mark. However, if the index fails to break through this level, it may continue to consolidate within the 54,000 to 56,000 range, which would help alleviate the overbought conditions created by the recent rally. Key support levels are identified between 54,000 and 53,500, aligning with previous breakout zones. Market volatility is anticipated to remain elevated due to ongoing geopolitical issues, tariff developments, and the unfolding Q4 earnings season.
Stock Recommendations
Bajaj Broking Research has identified Eternal (Zomato) as a strong buy within the price range of Rs 228 to Rs 233. The stock has recently broken out of a falling channel that contained its price action over the last three months, indicating a potential reversal of the corrective trend. Analysts expect the stock to reach a target price of Rs 255 in the medium term, which represents a significant retracement level.
Similarly, KEI Industries is recommended for purchase in the range of Rs 3,000 to Rs 3,070. The stock has also shown signs of a breakout above a declining trend, suggesting a resumption of its upward movement. Analysts project that KEI Industries could reach a target price of Rs 3,350 in the coming month, based on its recent performance and technical indicators. Both stocks are viewed as promising investments amid the current market conditions, with analysts urging investors to consider these opportunities carefully.
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