Top 5 Stock Picks for Friday: Experts Recommend Buying These Breakout Stocks Amid Market Momentum

Despite weak global market sentiment due to US-China tensions, the Indian stock market ended higher for the fourth consecutive session on Thursday. The Nifty 50 index gained 187 points, closing at a record high of 24,800. The BSE Sensex rose 626 points to 81,343, while the Bank Nifty index increased by 223 points to 52,620. However, the small-cap index dropped by 1.15%, and the mid-cap index fell by about 1%.

Trade Setup for Friday

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “Nifty’s upward momentum continued with higher highs and lows. Immediate support at the 10-day EMA helps during consolidations. Nifty is moving towards key resistance at 24,960, so expect some volatility or consolidation around 24,950-25,000 in the short term.”

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, said, “Bank Nifty defended its 21-DEMA support at 52,020 levels. As long as it stays above 52,000, the bullish momentum will continue. Resistance levels are at 52,800 and 53,000.”

Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, “We expect ongoing momentum with stock-specific action. All eyes are on the budget next week, which could set the tone for the market rally.”

Q1 Results Today

Forty-six major companies will announce their Q1 2024 results today, including Reliance Industries Ltd (RIL), Wipro, JSW Steel, BPCL, JSW Energy, One 97 Communications (Paytm), Union Bank of India, ICICI Lombard, Indian Hotels Company, and Oberoi Realty.

Buy or Sell Stock Ideas by Experts

Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommend the following stocks for buying or selling today:

Sumeet Bagadia’s Stock Picks

1. Mphasis: Buy at ₹2833.25, target ₹2975, stop loss ₹2735.
   • The stock shows a higher high and low pattern with a recent breakout indicating a potential upward trend.
     
2. Finolex Industries: Buy at ₹331.70, target ₹355, stop loss ₹318.
   • The stock broke out of a falling parallel channel, supported by high trading volumes, indicating a positive trend continuation.

Ganesh Dongre’s Stock Picks

3. Mahindra & Mahindra (M&M): Buy at ₹2820, target ₹2920, stop loss ₹2760.
   • A breakout at ₹2820 with a rising RSI indicates buying momentum. Traders can buy on dips with a target of ₹2920.
     
4. Bharti Airtel: Buy at ₹1480, target ₹1520, stop loss ₹1455.
   • A bullish engulfing pattern suggests a potential price rise. Buy with a target of ₹1520.
     
5. Cholamandalam Investment and Finance: Buy at ₹1450, target ₹1490, stop loss ₹1425.
   • A bullish reversal pattern suggests a retracement to ₹1490. Buy with a stop loss at ₹1425.