Top Stock Recommendations: Sagar Doshi of Nuvama suggests BPCL, Godrej Properties, and Canara Bank for July 18

Stock Market News: The domestic benchmark indices, the Sensex and the Nifty 50, will remain closed today (Wednesday, July 17), on account of Muharram. The bourses will resume its trading activity on Thursday, July 18.

Asian stock markets saw a surge on Tuesday's early trade, contributing to a global upswing as speculation that the US Federal Reserve may soon begin cutting interest rates spurred investors to move into riskier areas of the market.

The Nikkei 225 in Japan had a little boost but was choppy on Wednesday's session. It was down 93.02 points to 41,186. The Hang Seng in Hong Kong increased by 11.44 points to 17,739.42 in the meanwhile. The Taiwan Weighted index dropped to 23,810.65, a 186.60-point loss. Selling pressure was also there in Chinese markets, as the Shanghai Composite fell 10 points to 2,966.22 at the time this article was filed.

With increases in large-cap information technology companies and expectations of a US interest rate cut in September, the Sensex and Nifty 50 closed on Tuesday at record highs.

The Sensex finished 0.06% higher at 80,716.55, while the Nifty 50 increased by 0.11% to 24,613.

According to Vinod Nair, Head of Research at Geojit Financial Services, investor worries about present valuations and lower expectations for Q1FY25 results caused the domestic market to lose its early gains. This week marks the official start of the earnings season, giving investors a more comprehensive industry outlook. Globally, the probability of a rate decrease in September rose due to the Fed's dovish remarks about the trend of inflation and the US 10-year yield dropping ahead of US retail sales data.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50 has been witnessing a doji formation for the past 2 trading days of this truncated week where the index has been closing near to its opening area itself. Ongoing rally continues to remain strong as the index has not closed more than once below its previous day’s low in the past 6 weeks of trading. Also to note that for the 9 weeks consecutively, Nifty 50 has been making fresh all time highs, week after week. For now, upside target of Nifty 50 have now opened for 24,840 after its has completed its extended target of 24,580 in last week’s trade. Support however, can now be trailed to 24,450 as the upwards sloping trendline has been acting as dynamic support level for the index.

Bank Nifty Outlook

Bank Nifty has been facing supply near the 53,000 zone and hence is underperforming the Nifty 50 for past 3 weeks now. Demand on the other side has shifted higher to 52,000 odd levels. Daily charts suggest the consolidation is likely to continue unless a close above or below is seen. Hence, with support of 52,000 odd Bank Nifty is open to test 53,000 on the upside with the ongoing underperformance likely to continue for this week as well.

Top Stock Recommendations by Sagar Doshi

On top stock recommendations for Thursday, Sagar Doshi has recommended three stocks:

Bharat Petroleum Corporation Ltd (BPCL) (Buy): LCP : ₹315.95; Stop Loss : ₹303; Target Price: ₹335

Stock has broken out of the triangle pattern breakout on daily charts, with further upside opening up northwards of 325 zone. Momentum is set to accelerate once BPCL closes above 325 hurdle which the current set up indicates is likely to do by end of this truncated week. Other state owned oil marketing companies (OMC’s) as well have similar structure and are poised to show a quick pop through on daily charts.

Godrej Properties Ltd (Buy): LCP : ₹3,381; Stop Loss : ₹3,280; Target Price: ₹3,605

Real Estate as a sector continues to remain in momentum, while Godrej Properties has broken out of its 2 week consolidation and at life high ahead of the Union Budget due next week. The overall sector has shown strong strength from the start of this week and this is likely hold by till the announcements of Union Budget are out and absorbed by the market. The current setup suggests 6-8% follow through in price likely over next few trading sessions.

Canara Bank (Buy): LCP : ₹116.00; Stop Loss : ₹112.00; Target Price: ₹124.50

From the past 5 odd months, Canara Bank has entered into a broad range between 100 – 125. For now, the current support converges with an upward sloping trendline which is likely to act as demand zone for Canara Bank. A follow through on the upside to the tune of 7-8% is likely to unfold in the upcoming trading days.

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.