Sagar Doshi of Nuvama Recommends These Three Stocks Today

In early trading, the BSE Sensex rose by 134.64 points to hit a new all-time high of 78,188.16. The Nifty also increased by 28.2 points, reaching 23,749.50.

However, both indices experienced volatility and fluctuated between highs and lows. Sectors such as Financial Services, IT, Media, and Private Banks opened in the green, while Auto, FMCG, Metal, Pharma, and PSU Banks started in the red.

Some of the companies that began in the green on the BSE included UltraTech Cement, ICICI, NTPC, Bajaj Finance, Kotak Bank, Bajaj Finserve, Tata Motors, Hindustan Unilever, Adani Ports, Axis Bank, Bharti Airtel, ITC, and Reliance. Asian Paints, Titan, and Maruti Suzuki opened in the red.

Market Outlook:

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that seasoned investment experts have been highlighting opportunities in financials, especially large-cap private banks, over the past six months. These stocks have shown positive movement recently and are expected to perform well, given the anticipated strong Q1 results for FY25.

Nifty 50 Outlook:

Sagar Doshi, Senior Vice President- Research at Nuvama Professional Clients Group, observed that the Nifty 50 continues to reach new all-time highs. The index, which recently crossed the 23,500 mark, is on track for a further rise to 23,800/23,950. Support is now around 23,500. Doshi recommends a buy-on-dip strategy near 23,650, with a stop loss at 23,500.

Bank Nifty Outlook:

The Bank Nifty has shown significant gains, adding 1,000 points to its record highs. Doshi remains bullish on private banks, predicting that the Bank Nifty will continue to outperform. Targets for the Bank Nifty are set at 52,800-52,850, with any dips near 52,200 considered buying opportunities.

Top Stock Recommendations by Sagar Doshi:

1. Multi Commodity Exchange of India Ltd (MCX)
   • Buy at ₹3,941.60 Stop Loss: ₹3,810.00 Target Price: ₹4,185.00
   MCX has broken out of a sloping trendline, confirming a cup and handle pattern breakout on daily charts. A 5% to 7% follow-up move is possible. The stock has already found support at its 200 DMA earlier this month.
   
2. Birlasoft Ltd
   • Buy at ₹695.75 Stop Loss: ₹675.00 Target Price: ₹729.00
   Birlasoft has been consolidating for the past three weeks after crossing above its 200 DMA. It has closed at a two-month high and is about to break out from an inverted head and shoulder pattern, which is bullish in the near term. With the Nifty IT index also closing at a two-month high, further upward movement is expected.
   
3. HDFC Asset Management Company Ltd
   • Buy at ₹4,113
   • Stop Loss: ₹3,980
   • Target Price: ₹4,350
   HDFC Asset Management Company saw its highest-ever closing on daily charts on Tuesday. Historical data suggests that new all-time high closings typically lead to further gains. The stock is emerging from a four-month sideways consolidation and is expected to continue rising to new all-time highs.