Indian stock market: Despite weak global cues, Indian stock market benchmarks, including the Sensex and the Nifty 50, reached new record highs on Tuesday, June 25. The Nifty 50 reached a new all-time high of 23,754.15, while the Sensex also achieved a fresh peak of 78,164.71 during the session.
The Nifty 50 concluded the session up 183 points, or 0.78%, closing at 23,721.30, while the Sensex posted a gain of 712 points, or 0.92%, finishing at 78,053.52. Both indices achieved record closing levels.
“Nifty steadily inched upwards to make a fresh high of 23,754 levels. The index closed with handsome gains of 183 points at 23,721 levels. Sector-wise, it was a mixed bag with buying seen in banking, financials, and IT. Sensex crossed 78k for the first time, mainly driven by banking stocks. The current account deficit reduced to 0.7% of GDP in FY24 from 2% in FY23 and recorded a surplus of 0.6% of the GDP in Q4 due to higher service exports. Even in the upcoming budget, the focus will remain on fiscal consolidation along with growth-oriented measures to address rural stress. Hence, we expect the market to maintain its positive momentum as we draw nearer to the event. Globally, investors would track US Consumer confidence data scheduled late today,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Brokerage firm Motilal Oswal recommended three stocks to buy this week - Escorts, IDFC First Bank, and Indian Hotels.
Escorts is in a strong uptrend and trading at lifetime-high territory. On a monthly scale, the stock is forming a higher highs–higher lows structure, and a strong bullish candle. On a weekly scale, the stock gave consolidation breakouts above 4,100 zones, and the uptrend was intact. On a daily scale, it negated the formation of lower highs after three sessions and gave the highest daily close with noticeable volumes. The stock has been a huge outperformer within auto space and is likely to scale new record highs. Looking at the overall chart structure, we are recommending to buy the stock while keeping stop loss below 4,150 levels on a closing basis for a new lifetime high target towards 4,700 zones.
IDFC first bank retested its previous breakout zone on a monthly scale and formed a Hammer candle with a long lower shadow, as buying is visible at lower zones. On a weekly scale, the stock gave a falling channel breakout and managed to close above the same. Good buying interest is visible across midcap banks, and the momentum RSI oscillator gave a bullish crossover, which suggests momentum to continue in coming sessions. It is holding well above its short-term moving averages, and the stock is likely to march upwards in coming sessions. Looking at the overall chart structure, we are recommending to buy the stock while keeping a stop loss below 79 levels on a closing basis for a new high target towards 92 zones.
Indian hotel gave a range breakout on a weekly scale after sixteen weeks and formed a strong bullish candle. It is also forming higher lows from the past two weeks and gave a highest weekly close. Ona daily scale, the stock is holding well at life-high territory and the relative strength index (RSI) is also near 70 zones, which suggests overall momentum in the stock. Looking at the overall chart structure, we are recommending to buy the stock while keeping stop loss below 610 levels on a closing basis for a new life-time high target towards 700 zones.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
