Indraprastha Gas, Sun TV, HDFC AMC: Sagar Doshi Of Nuvama Top Stock Picks

Stock Market News: On Tuesday, domestic stock indices, the Sensex and Nifty 50, dropped for the third day in a row due to profit-taking in capital goods, energy, and power stocks, as well as concerns about election results. India VIX, a measure of market volatility, spiked to a two-year high of 24.14.

After fluctuating between gains and losses, the BSE Sensex closed at 75,170.45, down 220.05 points, or 0.29%. It reached a peak of 75,585.40 and a low of 75,083.22 during the day. The NSE Nifty started higher but fell 44.30 points, or 0.19%, to end at 22,888.15.

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Prashanth Tapse, a Research Analyst at Mehta Equities, said the Nifty 50 has been declining for three days as investors are cautious ahead of six major events: US PCE Inflation on May 31st, the May F&O expiry on May 30th, US GDP on May 30th, India’s GDP on May 31st, and May Auto Sales on June 1st. He expects short-term volatility due to these significant developments.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

The Nifty 50 has been flat for three days after a big rally last Thursday. Investors are cautious ahead of election results, especially with India VIX gaining over 100% in the past two weeks. Overall, Nifty 50 has gained over 1,200 points from this month’s low and is consolidating ahead of the election outcome. Chart patterns suggest that the index could rise to 23,500+ unless it closes below 22,700.

Bank Nifty Outlook

Bank Nifty has recovered nearly 90% of its losses from earlier this month. With foreign institutional investors (FIIs) covering their short positions and turning net long ahead of the election results, private banks are expected to see increased participation. Bank Nifty’s outperformance is likely to continue this week, with the potential to reach new all-time highs. Any dips below 49,000 are expected to be buying opportunities.

Top Stock Picks by Sagar Doshi

For Wednesday, Sagar Doshi recommends three stocks:

1. Indraprastha Gas Ltd (Buy):
   • Current Price: ₹472.70
   • Stop Loss: ₹455.00
   • Target Price: ₹512.00
   Indraprastha Gas has found strong support at its 200-day moving average (DMA) on the daily charts and is ready to break out above a sloping cup and handle formation. Momentum is likely to increase once it closes above 478, with the potential to gain at least 10% from the current price. The last four days of price action have built a strong base for the stock.
2. Sun TV Network Ltd (Buy):
   • Current Price: ₹660.70
   • Stop Loss: ₹634.00
   • Target Price: ₹711.00
   The stock has been moving in a higher top, higher bottom formation for the past two months. Sun TV Network has taken support at the 200 DMA three times in the past month, ensuring a solid base. The stock recorded nine-month high volumes in today’s trading session, suggesting an upswing beyond 700.
3. HDFC Asset Management Company Ltd (HDFC AMC) (Buy):
   • Current Price: ₹4,011.60Stop Loss: ₹3,790.00Target Price: ₹4,450.00
   HDFC AMC has overcome the selling zone of 3950-4000, where it faced profit-taking for the past few months. In today’s session, the stock broke out of this higher range, indicating an 8 to 10% upward move. Momentum indicators suggest the stock is ready for a fresh upswing.