Top Picks Today: Sagar Doshi of Nuvama Backs Bandhan Bank, NALCO, Kotak Mahindra as Markets Await US Fed

The Sensex and Nifty 50, India’s main stock market indices, ended Tuesday slightly higher after reaching new highs earlier in the day. Despite this, the overall market stayed quiet, waiting for the outcome of the important U.S. Federal Reserve meeting on interest rates.

By the end of the day, the Sensex rose by 90.88 points (0.11%) to close at 83,079.66, while the Nifty 50 increased by 34.80 points (0.14%) to finish at 25,418.55. Consumer durables and real estate stocks were among the top performers.

Market Sentiment and US Fed Expectations

Vinod Nair, Head of Research at Geojit Financial Services, said that hopes of a U.S. Federal Reserve rate cut have boosted sentiment in the Indian market. Even though a 25 basis point rate cut is widely expected, investors are closely watching the Fed’s comments on the economy and future rate cuts. Strong institutional buying is also helping to support the market.

Nifty 50 Outlook by Sagar Doshi (Senior Vice President, Research, Nuvama)

Nifty 50 has seen a strong rally, gaining about 500 points in the last week, reaching its short-term targets of 25,300 to 25,350. The index is now consolidating at record highs, with 25,300 likely to act as a short-term support level. Any dip below this level is expected to be bought, with further targets set at 25,550 to 25,750. A stop loss should be placed at 25,200.

Bank Nifty

Bank Nifty has hit an eight-week high as private banks gain strength, pushing the index toward new all-time highs. After breaking a two-month downward trend, the index met its short-term targets of 51,750 to 52,000. The next support level is at 51,500, with a target of new highs in the coming days.

Top Stock Recommendations by Sagar Doshi

Sagar Doshi has recommended the following stocks for Wednesday:

Bandhan Bank Ltd (BUY)

• Current Price (LCP): ₹207
• Stop Loss: ₹198
• Target Price: ₹235
  Bandhan Bank is showing signs of strength, with increased volumes over the last two months. A breakout above ₹211 could lead to a move towards ₹230-240.

National Aluminium Company Ltd (NALCO) (BUY)

• Current Price (LCP): ₹186
• Stop Loss: ₹178
• Target Price: ₹215
  NALCO has broken its previous high with strong trading volumes, and the overall positive trend in metal stocks could push the price higher, especially with a potential U.S. rate cut on the horizon.

Kotak Mahindra Bank Ltd (BUY)

• Current Price (LCP): ₹1,846
• Stop Loss: ₹1,785
• Target Price: ₹2,050
  Kotak Mahindra Bank is forming a bullish pattern known as the “inverse head and shoulders.” Once it crosses the swing high of ₹1,867, the stock is expected to gain momentum and move toward ₹2,050.