Top Stock Recommendations: Dharmesh Shah of ICICI Securities suggests buying SBI, and Power Grid Corp tomorrow

On Friday, the 30-share BSE Sensex closed astatine 73,878.15 level, down 732.96 points, oregon 0.98%. The NSE Nifty 50 ended astatine 22,475.85, down 172.35 points, oregon 0.76%.

Analysts said that sentiment, fundamentals, and overbought method situations were successful conflict. Excessive optimism, overbought method conditions, and the revelation that FIIs were nett sellers of ₹2,116 crores past week were the 3 antagonistic catalysts that gave emergence to the bears' emergence successful Friday's commercialized amid monolithic nett booking.

Also Read: Stock marketplace news: Sensex crashes 1%; India VIX jumps 9%; wherefore did Indian banal marketplace autumn today?- explained

Nifty 50 bulls could enactment beardown against a inheritance of six favourable triggers, according to Prashanth Tapse, Research Analyst and Senior Vice President of Research astatine Mehta Equities. These see Federal Reserve Chairman Jerome Powell's dovish stance connected involvement rates. (Powell restored anticipation that the Fed volition beryllium capable to little involvement rates this year); In the meantime, the Fed's expectations for a complaint chopped person been pushed backmost from November to September owed to a weaker-than-expected April jobs report; WTI lipid prices person dropped 6.5% to a seven-week debased of $78.30 per barrel; and record-high GST revenue.

Gross Goods and Services Tax collections deed a caller precocious of ₹2.10 lakh crore successful April 2024. This indicates a noteworthy yearly maturation of 12.4%, mostly owed to a robust emergence successful some home transactions (up 13.4%) and imports (up 8.3%); Finally, astatine the pre-election rally, investors expressed anticipation oregon anticipation that the existing authorities volition proceed successful the wide elections; the India Meteorological Department has forecast the heaviest rainfall successful implicit 20 years.

Also Read: Stock divided 2024: Small-cap banal Rushil Decor sets committee gathering day to see banal subdivision

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

• The scale recorded a caller all-time precocious of 22,794 and underwent nett booking successful Friday’s session. The play terms enactment formed a carnivore candle with a agelong precocious shadow, highlighting nett booking adjacent 22,800 amid elevated volatility up of the election.

• In the coming week, we expect Nifty 50 to acquisition higher basal enactment supra 22,000, which would acceptable the signifier to situation 22,800 and accelerate upward momentum towards our earmarked people of 23,400 by June. In the process, bouts of volatility up of the wide predetermination signifier cannot beryllium ruled retired amidst the Q4 earning season. Thus, utilising dips to accumulate prime stocks would beryllium the prudent strategy to adopt. Our constructive bias is validated by the pursuing observations:

• A) Contrary to the adage of merchantability successful May and spell away, Indian equities person delivered affirmative returns successful May during wide predetermination years successful 4 retired of the past 5 instances since CY1999. Minimum returns were 1.5%, portion the mean was 14%.

• B) Brent prices person fixed breakdown from 5 period rising transmission indicating that upsides are capped astir $92. Further declines towards 75–78 are apt successful the coming month.

• C) The broader marketplace remains strong, led by mid- and small-caps beardown show successful April arsenic some indices recorded caller all-time highs. Large FII selling besides being absorbed by DII flows, limiting downsides.

Also Read: FPIs put ₹1,156 crore successful Indian equities, stay nett sellers successful indebtedness market; Here's what experts predict

Bank Nifty Outlook:

• The Bank Nifty scale has fixed a breakout from the 3 ½ period consolidation, indicating an acceleration of the up move. On the comparative front, Bank Nifty is expected to outperform Nifty 50. We expect the slope Nifty to signifier a higher basal supra 48,000 and gradually pave the mode to situation the intelligence people of 50,000. 

Top Stock Recommendations:

Buy State Bank of India (SBI) successful the scope of ₹810–832 for the people of ₹890 with a halt nonaccomplishment of ₹745.

Buy Power Grid Corporation of India Ltd successful the scope of ₹305–313 for the people of ₹338 with a halt nonaccomplishment of ₹299.

Also Read: Dividend Stocks: HDFC Bank, RK Forgings, HCL Tech, among others to commercialized ex-dividend adjacent week; cheque afloat list

Disclaimer: The Research Analyst oregon his relatives oregon I-Sec bash not person actual/beneficial ownership of 1% oregon much securities of the taxable company, astatine the extremity of 03/05/2024 (preceding date) oregon person nary different fiscal involvement and bash not person immoderate worldly struggle of interest.

The views and recommendations supra are those of idiosyncratic analysts, experts and broking companies, not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 05 May 2024, 12:35 PM IST