Buy or Sell: Dharmesh Shah of ICICI Securities recommends buying TCS and SAIL stock for March 11

Stock Market News: Domestic benchmark equity indices, the Sensex and the Nifty 50, were muted at the opening on Monday, mirroring Asian counterparts ahead of a crucial US inflation report. Investors also awaited domestic inflation data, which is expected on Tuesday.

BSE Sensex opened higher by 59.83 points or 0.08% at 74,175.93 level while the Nifty 50 opened at 22,517.50 level, up 24 points or 0.11%.

"Since the market is scaling new highs consistently, the undertone of the market remains bullish and, therefore, investors should remain invested. Large caps are likely to witness buying on dips while the broader market will face headwinds," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 11

After a long and restful weekend, investors have a busy week ahead of them with data, some significant macro events, and a buzzing primary market that will see the opening of six small and medium-sized business (SME) IPOs and two mainboard IPOs the following week.

Domestic equity benchmark indices, the Sensex and Nifty 50, last week witnessed gains for a fourth week in a row and touched all-time highs. 

Sensex and the Nifty 50 finished Thursday's trading on a flat note despite setting new highs. The 30-share BSE Sensex ended higher by 33.40 points or 0.05% at 74,119.39 level while the Nifty 50 closed at 22,493.55 level, up 19.50 points or 0.09%. In intraday trade, the Sensex and Nifty 50 touched new record highs of 74,245.17 and 22,525.65 amid the bumpy ride. However, it ended the truncated week on a positive note. 

Also Read: Stock market today: Nifty 50, Sensex hit record highs; mid, smallcaps outperform

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For the third week in a row, however, the small- and mid-cap indices underperformed. On the other hand, analysts say that the Bank Nifty performed well last week and is on track to hit a new all-time high. 

On Friday, March 8, the domestic benchmark equity indices was shut on account of the Shivratri Festival.

The outlook for the market, according to Arvinder Singh Nanda, senior vice president at Master Capital Services Ltd, could be influenced by significant domestic and global economic data, US Federal Reserve rate decisions,  foreign and domestic institutional investors' investment patterns, global market trends, movement of the rupee against the dollar, crude oil inventories, and upcoming general elections.

Over the next week, the major economic data points that will be looked are the GDP of Japan and the UK, the unemployment rate in the UK, the US CPI inflation numbers, the industrial production data, and the CPI and WPI inflation figures for India.

Also Read: Buy or sell: Rajesh Palviya of Axis Securities recommends Avanti Feeds, Union Bank, Pidilite stock for Monday

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

Equity benchmarks concluded the truncated week on a positive note on expected lines, wherein the Nifty 50 endured its record-setting spree with a new high of 22,525. The formation of a higher peak and trough on the weekly chart signifies buying demand at an elevated support base, which makes us reiterate our positive bias and expect Nifty 50 to head towards 22,700 in the coming weeks. In line with our view, we expect large caps to continue with their relative outperformance against the broader market as the ratio of Nifty 50 vs Nifty 500 has bottomed out. Thus, bouts of volatility owing to global development should be utilised as an incremental buying opportunity since immediate support is placed at 22,200, said Dharmesh Shah, Vice President, ICICI Securities.

The Bank Nifty has witnessed a follow-through strength post-faster pace of retracement, while the Nifty IT witnessed supportive efforts from the 50-day EMA (cumulatively, banking and IT carries 50% weightage in the Nifty) that bodes well for the next leg of the up move. We expect Bank Nifty to endure its upward momentum and gradually challenge the life high of 48600 while strong support is placed at 46,900, explained Shah.

Also Read: Over 30 smallcaps log double-digit as Sensex posts fourth straight weekly gain; Tata Group stocks among gainers

Stock Recommendations by Dharmesh Shah

On stocks to buy on Monday, Dharmesh Shah recommended two stocks:

Buy Tata Consultancy Services Ltd (TCS) in the range of ₹4,060–4,110 for the target of ₹4,495 with a stop loss of ₹3,795. 

Buy Steel Authority of India Ltd (SAIL) in the range of ₹135–139 for the target of ₹156 with a stop loss of ₹126.

Also Read: Week Ahead: Inflation data, FII activity, global cues among key market triggers as Nifty 50 eyes 22,800 this week

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 07/03/2024 (preceding date) or have no other financial interest and do not have any material conflict of interest.

The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.