Market Surge: Top Stock Picks for Today
In a week marked by significant gains, the stock market is witnessing a surge, with key indices reaching new highs. Aakash K Hindocha, Deputy Vice President of WM Research at Nuvama Professional Clients Group, has identified Affle, Amara Raja Energy & Mobility, and Bharti Airtel as the top stock recommendations for today. As the market approaches the monthly derivative expiry, volatility is expected to remain elevated.
Nifty Index Analysis
The Nifty index has experienced a remarkable rally, gaining nearly 1,000 points over the past week. On Monday, it reached a fresh ten-week high, but subsequent trading revealed some price pressure, closing below the previous day’s high. This trend has raised concerns about momentum, as the index also closed below its prior low. Analysts suggest that the Nifty could test levels above 24,000, potentially retesting its 200-day moving average. However, with the upcoming monthly derivative expiry, traders should brace for increased volatility, with predictions of a 400-500 point swing in the next few sessions. Despite the recent uptick, support levels remain below 23,000, indicating a cautious outlook.
Bank Nifty Performance
The Bank Nifty has surged by 9% over the past two weeks, reaching a new three-month high. The index has met its intermediate target of 51,650, with a continued bullish bias towards the 52,500 zone. Analysts believe that the Bank Nifty may retest its 200-day moving average, with initial support expected below the 51,000 mark. While the index appears stretched compared to the Nifty, its outperformance is anticipated to continue, making it a focal point for investors.
Stock Recommendations
Affle (BUY)
- Last Closing Price (LCP): ₹1,601.90
- Stop Loss: ₹1,530
- Target: ₹1,740Affle has shown a breakout from a three-month trendline, aligning with a breakthrough from its 200-day moving average resistance near ₹1,540. This positions the stock for a potential rally of 8% to 10%, making it an attractive buy.
Amara Raja Energy & Mobility (BUY)
- LCP: ₹1,039.90
- Stop Loss: ₹1,007.80
- Target: ₹1,200Amara Raja Energy & Mobility has corrected nearly 50% from its highs, mirroring previous corrections in the electric vehicle sector. A confirmed nine-month trendline breakout suggests an initial upside of 12% to 15%, presenting a compelling investment opportunity.
Bharti Airtel (BUY)
- LCP: ₹1,738.55
- Stop Loss: ₹1,690
- Target: ₹1,825Bharti Airtel has broken out of a six-month cup and handle pattern, signaling the end of its consolidation phase. The stock has consistently outperformed the index over the past two quarters, and this breakout indicates a potential for reaching new all-time highs.
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