Stocks in focus: Rajesh Palviya of Axis Securities recommends Laurus Labs, Lupin, and Rites today

Stock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, began Friday's session lower due to news from the biggest private lender HDFC Bank that loans fell sequentially in the June quarter.

At 9:15 IST, the S&P BSE Sensex fell 0.34% to 79,778.98 points, while the Nifty 50 was down 0.37% at 24,213.35 points.

The chief investment strategist of Geojit Financial Services, Dr. V K Vijayakumar, states that investors should only anticipate modest gains at the current levels in the longer run. Given the favorable long-term outlook, investors may keep making methodical investments.

The market may be supported in the immediate future by FIIs' substantial long position in index derivatives and their aggressive cash market purchases. The US employment report that is anticipated today might be a significant catalyst. The labor market is becoming more flexible, and the economy is slowing down, which might lead to a rate cut by the Fed in September.

Also Read: Stocks to buy or sell: NELCO to MBL Infrastructure — Sumeet Bagadia recommends five breakout stocks today

Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

The benchmark index has registered an all-time high at 24,401 representing bullish sentiments. The index is in a strong uptrend forming a series of higher tops and bottoms. The index is well placed above its 20, 50, 100 day SMA and these averages are inching up along with the price rise confirming the bullish trend. We expect this momentum to extend towards 24,500-24,800 levels in upcoming weeks. The short-term support zone is placed around 24,200-24,000 levels, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.

Also Read: HDFC Bank share price falls over 3% as deposits, advances growth decline in Q1

Stocks in focus today - Stock recommendation for Friday by Rajesh Palviya

Laurus Labs Ltd

With the current close, the stock has decisively broken out the past four months' “down-sloping" trend line resistance at 450 levels. This breakout is accompanied by huge volumes indicating increased participation. Recently the stock has recaptured its 20, 50 and 100-day SMA and rebounded sharply. The daily "band bollinger" buy signal signifies increased momentum. The daily and weekly strength indicator RSI has turned bullish showing rising strength.

“Investors should buy, hold and accumulate this stock with an expected upside of 500-535 with a downside support zone of 435-420 levels,” said Rajesh.

Lupin Ltd

The stock has registered a new high at 1,757 levels indicating positive bias. It has decisively broken out the past 6-7 months "consolidation zone" (1,720-1,550) on a closing basis indicating a strong comeback of bulls. On the weekly time frame, the stock has recaptured 30-week SMA (1,539) and rebounded sharply. This breakout is accompanied by huge volumes indicating increased participation in the rally. The daily and weekly strength indicator RSI has turned bullish which shows rising strength. The daily and weekly "band bollinger" buy signal indicates increased momentum.

“Investors should buy, hold and accumulate this stock with an expected upside of 1,860-1,950 with a downside support zone of 1,700-1,650 levels,” explained Palviya.

Also Read: Stock market today: Trade setup for Nifty 50 to Q1 results 2024, five stocks to buy or sell on Friday

Rites Ltd

Since Feb'24, the stock has been consolidating within the "Triangular" formation however with the current close, it has decisively broken out the same at 715 levels. This breakout is accompanied by huge volumes which signifies increased momentum. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms a bullish trend.

“Investors should buy, hold and accumulate this stock with an expected upside of 790-840 with a downside support zone of 700-680 levels,” advised Rajesh.

Also Read: Stock market today: Sensex, Nifty 50 end with mild gains on profit booking at higher levels

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.