Stocks in focus: Rajesh Palviya of Axis Securities recommends Coal India, Tata Power, and Hindustan Oil today

Stock Market News: The opening session on Friday saw selling pressure on the domestic benchmark indices, the Sensex and Nifty 50, amid the decline in global markets.

The Sensex index fell by 708.55 points (0.87%) to 81,158.99 points, while the Nifty 50 index debuted with a fall of 221.90 points (0.89%) at 24,789 points.

Yesterday, the US and other developed nation markets were rattled by a rapid downturn in the US economy, as seen by the steep decline in the ISM Manufacturing index to 46.6, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

This has revived anxieties in the US of a recession. The market, which had been rising due to expectations of a gentle landing, has become uneasy due to the potential for a US recession and the potential effects on the market. The US 10-year bond yield dropped sharply to 3.95%, indicating concern in the market. The Indian market may also be impacted by this, said Vijayakumar.

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

The benchmark index is currently in a strong uptrend across all time frames, forming a series of higher highs and higher lows. It has recently reached an all-time high at 25,078 levels, indicating bullish sentiments. The index is well placed above its 20, 50 and 100 day SMA which reconfirms positive trend. We anticipate this momentum to continue towards 25300-25500 levels. On the other hand, a crucial support zone is placed around 24,800-24,500 levels. Both the daily and weekly RSI strength indicators are in positive terrain indicating rising strength.

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

Coal India Ltd (CMP: ₹540)

The stock has confirmed a "triangular" breakout at 520 levels on the daily chart, indicating a continuation of the prior uptrend. It has recaptured the 20, 50, and 100-day SMAs and rebounded sharply, reaffirming bullish sentiments. This breakout is accompanied by high volume, signaling increased participation. Additionally, the daily, weekly, and monthly RSI is in positive terrain, indicating rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of ₹555-570 with downside support zone of ₹525- 505 levels.

Tata Power Company Ltd (CMP: ₹465)

The stock has broken out of the 3-4 month consolidation zone (between 460 and 400) on a closing basis, signaling a strong comeback by the bulls. This breakout was accompanied by high volume, indicating increased participation. The daily, weekly, and monthly RSI is in positive terrain showing rising strength.The stock is well placed above its 20, 50, 100 and 200 day SMA, and these averages are also rising along with the price, confirming the bullish trend.

Investors should buy, hold and accumulate this stock with an expected upside of 485-500 with downside support zone of 455-445 levels.

Hindustan Oil Exploration Co. Ltd (CMP: ₹286)

On the monthly time frame, the stock has encountered a "multiple resistance zone" around the 241 levels when looking at closing basis.There has been a significant increase in trading volumes, indicating higher participation. The stock is well placed above its 20, 50, 100 and 200 day SMA, and these averages are also moving upwards along with the price, confirming a bullish trend. Additionally, the daily, weekly, and monthly Relative Strength Index (RSI) is in positive terrain, indicating increasing strength.

Investors should buy, hold and accumulate this stock with an expected upside of 315-335 with downside support zone of 272-260 levels.

Disclaimer: 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.