Essential Stock Picks for Today: Recommendations for July 24
According to Aakash K Hindocha, Deputy Vice President of WM Research at Nuvama Professional Clients Group, three stocks are being highlighted as top buy recommendations for today: Balkrishna Industries, Sona BLW Precision Forgings, and Hindalco. Hindocha also provided insights on the Nifty and Bank Nifty indices, indicating a consolidation phase for Nifty while Bank Nifty shows potential for upward momentum following a recent breakout.
Nifty Index Analysis
The Nifty index has entered a consolidation phase, with current trading levels indicating a potential upside. Hindocha suggests that the index is likely to remain within a range of 24,800 to 25,320 for the remainder of the week. This assessment is based on chart structures and derivative data positioning. Despite the lack of significant tailwinds, the performance of Nifty IT could positively influence the index, potentially leading to a breakout above the 25,320 mark. Such a movement could signal a sustained upward trend, offering investors a glimpse of future gains.
Bank Nifty Performance
In contrast to Nifty, the Bank Nifty index has shown promising signs of strength. After successfully reclaiming its resistance level of 56,750 during Monday’s trading session, the index has continued its upward trajectory, surpassing 57,100. This breakout suggests a favorable momentum for long positions in Bank Nifty. Hindocha notes that the index’s outperformance compared to Nifty is likely to persist. However, he cautions that a close below 56,700 could introduce downward pressure. The outlook remains optimistic, with targets set for new all-time highs.
Stock Recommendations
Balkrishna Industries (BALKRISIND) is recommended as a buy with a last closing price (LCP) of 2,740.40. The stock has recently achieved a cup and handle breakout on its daily chart, marking the end of a six-month consolidation phase. Analysts project a potential upside of 10-12% from current levels, with a target price of 3,030 and a stop loss set at 2,680.
Sona BLW Precision Forgings (SONACOMS) is also highlighted as a buy, with an LCP of 489. After reaching a 3.5-year low at the beginning of the fiscal year, the stock has shown signs of recovery, moving towards the 540-550 range. A bullish pole and flag pattern breakout has been confirmed, along with a sloping trendline breakout. The target price is set at 545, with a stop loss at 466.
Hindalco is another stock recommended for purchase, with an LCP of 695.40. The stock has recently experienced a nine-month trendline breakout, and after a retest of the breakout price, it is positioned for further upward movement. Analysts suggest a target price of 730, with a stop loss at 668.
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