Rajesh Palviya’s Top 3 Stock Picks: Cipla, JSW Energy, and More to Watch Next Week

Rajesh Palviya of Axis Securities has noticed some key trends in the market. While the Nifty has been trading in a tight range despite hitting record highs for three days in a row, other indices like Nifty Bank, midcap, and smallcap have also reached new highs. The broader market shows strong buying interest across various sectors, particularly in areas like paper, fertilisers, and sugar, which have underperformed in recent years but are now catching up.

Nifty and Bank Nifty Outlook

• Nifty: Palviya is optimistic about Nifty’s performance, suggesting a potential target of 23,700 to 23,800. He advises adopting a buy-on-dip strategy with a stop loss at 23,200.
• Bank Nifty: Although Bank Nifty has struggled to break past the 50,000 mark, Palviya expects it to perform well if it opens above 50,100 next week. This could drive it towards 50,500 to 50,600. The suggested stop loss for Bank Nifty is 49,600.

FII and Domestic Participation

Foreign Institutional Investors (FIIs) have reduced their short positions significantly, which Palviya views as a positive sign. The market rally is currently driven by domestic investors, supported by strong SIP inflows. This domestic enthusiasm reflects optimism about India’s economic growth, even though FIIs are not heavily buying at the moment.

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Stock Recommendations

For the coming week, Palviya recommends the following three stocks:

1. Cipla
   • Sector: Pharma
   • Reason: Cipla has broken out of a three-week consolidation phase and is on an upward trend.
   • Target: ₹1,620
   • Stop Loss: ₹1,530
2. JSW Energy
   • Sector: Energy
   • Reason: JSW Energy has broken out of a multiple supply zone and is near its all-time high.
   • Target: ₹710
   • Stop Loss: ₹668
3. Triveni Engineering
   • Sector: Sugar
   • Reason: The stock has emerged from a seven-eight week consolidation, indicating potential follow-up buying.
   • Target: ₹425
   • Stop Loss: ₹388

Conclusion

Palviya’s stock picks reflect sectors that are gaining traction and show strong technical indicators for further growth. His advice for the broader market remains bullish, with a focus on buying on dips and monitoring key support levels.