Top Picks from Sagar Doshi Of Nuvama: Buy Abbott India, Dabur, Sell Federal Bank

The Sensex and Nifty 50 saw a dramatic selloff on June 4 due to unexpected election results. The Nifty 50 fell by 1,379 points (5.93%) to 21,884.50, and the Sensex dropped by 4,390 points (5.74%) to 72,079.05. Investors lost around ₹31 lakh crore in a single day as market capitalisation on the BSE fell from ₹426 lakh crore to ₹395 lakh crore.

Market experts say the uncertain election outcome has made investors cautious, expecting continued volatility in the near term.

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Nifty 50 Outlook

Sagar Doshi, Senior VP-Research at Nuvama Professional Clients Group, noted that the Nifty 50 ended nearly 6% lower. The Nifty 50 moved 9% from its high to low, consistent with its historical volatility on election result days. The 200 DMA support is at around 21,100, with 22,300 as a potential supply zone. The index might retest the sub-21,300 level.

Bank Nifty Outlook

Bank Nifty underperformed the Nifty 50, testing its 200 DMA and dropping nearly 5,000 points during the day. The 47,700 level is likely to act as a supply zone, with a possible retest of 46,200.

Sagar Doshi’s Top Stock Recommendations

1. Abbott India Ltd (Buy)
   • Current Price: ₹26,340
   • Stop Loss: ₹25,500
   • Target Price: ₹29,600
   • Reason: The stock broke out after 6 months of consolidation and is likely to gain momentum, especially in the defensive sector. A close above ₹26,900 could lead to a 10% increase.
2. Dabur India Ltd (Buy)
   • Current Price: ₹578
   • Stop Loss: ₹550
   • Target Price: ₹610
   • Reason: The stock has bounced from its 21 DMA, showing strong demand and consolidation breakouts on monthly and weekly charts. FMCG stocks are expected to perform well.
3. Federal Bank Ltd (Sell)
   • Current Price: ₹156
   • Stop Loss: ₹163
   • Target Price: ₹142
   • Reason: The stock shows a lower top and bottom formation with negative divergence on long-term charts. Selling pressure is expected to increase, potentially retesting the ₹140-142 level.