Latest news with #Midcap
Mint
8 hours ago
- Business
- Mint
Stocks to buy or sell: Dharmesh Shah of ICICI Sec suggests buying Larsen & Toubro shares tomorrow
Stock market today: The Indian stock market experienced a significant upswing on Friday, as benchmark indices finished notably higher, driven by widespread purchasing across various sectors and strong investor confidence. The Sensex rose by 1,046.30 points, closing at 82,408.17, while the Nifty 50 increased by 319.15 points, finishing the day at 25,112.40. Among the constituents of the Nifty 50, 44 stocks closed in positive territory, with only 6 in decline, highlighting the overall strength of the market. Dharmesh Shah, Vice President at ICICI Securities, said Nifty 50 looks poised for a breakout from five weeks of consolidation (25,200-24,500) that would open the door for 25,500 in coming weeks. Shah has recommended one stock to buy for short-term. Here's what he expects from Indian stock market next week, along with his stock recommendation. Equity benchmark gained ~1.5% and settled the session at 25,112, outpacing Midcap index (-0.5%), and also fared well against developed markets. Sectorally, rate sensitives regained momentum led by Financials, auto. Meanwhile, pharma underwent profit booking after announcement of possible tariff by US. The weekly price action formed a bull candle confined within last week's trading range, indicating prolonged consolidation. Over past five weeks Nifty 50 has been consolidating in 700 points range wherein it managed to defend the 24500 on multiple occasions despite escalated geopolitical issues. Further, index heavy weights regained upward momentum as RBI eased project financing norms that boosted market sentiment. We believe, Nifty 50 has formed a higher bottom above 50-day EMA (24,480) and looks poised for a breakout from five weeks of consolidation (25,200-24,500) that would open the door for 25,500 in coming weeks. Meanwhile, 24,500 would continue to as key support zone. In the process, bouts of volatility owing to geopolitical concern as well as monthly expiry week cannot be ruled out. Hence, any dip from hereon should be capitalised as incremental buying opportunity in a quality stock. Past four decades, six major geopolitical escalations suggest that index forms a major bottom once the anxiety around the geopolitical event settles down. And investing in such a panic like scenarios with a long-term mind set has been rewarding with double digit returns in subsequent three months. Hence, we advise dips should be capitalised to build quality portfolios from medium to long term perspective. The index is witnessing shallow retracement as over past five weeks it has merely corrected 3% of preceding six week's rally (15%), indicating robust price structure that has helped index to cool off overbought conditions and set the stage for next leg of up move. On the broader market front, The Nifty midcap index has taken a breather after 28% rally off April low and now approaching lower band of rising channel that coincided with 50 days EMA. In addition to that, since April low, Midcap index has not corrected >6% while on the weekly chart it has not closed below its previous week's low. In current scenario, despite ongoing volatility, midcap index has been maintaining the same rhythm. Thereby we expect index to find its feet around 50 days EMA and stage a gradual recovery 1. Development of geopolitical issues 2. Brent crude is hovering at immediate hurdle of $78. Lack of follow through strength would result into consolidation in 78-66 range 3. Further weakness in US Dollar index 4. Bilateral Trade Agreement between India and US Dharmesh Shah of ICICI Securities recommends buying Larsen & Toubro shares this week. Buy Larsen & Toubro shares (L&T) in the range of ₹ 3,420-3,660. He has L&T share price target of ₹ 3,928 with a stop loss of ₹ 3,264. 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 20/06/2025 or have no other financial interest and do not have any material conflict of interest. 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.
Mint
03-06-2025
- Business
- Mint
Axis Securities raises Nifty target to 26,300 for March 2026; top stock picks include HDFC Bank, SBI, and others
Axis Securities revised its Nifty 50 target upward to 26,300 for March 2026, citing robust earnings visibility, improved market sentiment, and strong macroeconomic fundamentals. The brokerage said that while the broader market witnessed significant recovery post the lows of February 2025, near-term consolidation is likely due to global economic uncertainties. The firm maintained a bullish outlook on domestic-facing sectors, while advising caution on export-oriented businesses in the wake of ongoing global trade policy shifts. 'India remains a haven amidst global volatility, and with supportive domestic cues, we believe the Nifty is poised to deliver double-digit returns over the next 2–3 years,' Axis Securities said. While near-term consolidation is likely, the focus will remain on selectively positioning in largecap, domestically-driven sectors that offer better risk-reward in the current climate. According to Axis Securities, the Indian equity market experienced a notable rebound starting March 2025. The Nifty 50 gained 12 percent from its February lows, while the Midcap and Smallcap indices surged by 20 percent and 22 percent, respectively. The rally was attributed to factors such as Q4FY25 earnings aligning with expectations, positive trade agreements, easing geopolitical tensions, and a supportive macroeconomic setup for FY26. The last one month alone saw the Smallcap index rising 9.6 percent, the Midcap index up 6.1 percent, and the Nifty 50 inching up by 1.7 percent. 'The market breadth improved substantially in the last three months,' Axis Securities said. Despite the rebound, Axis Securities noted the presence of lingering macroeconomic challenges, including trade policy uncertainty with the US and China, slowing global growth, movement in US 10-year bond yields, and volatility in the dollar index. 'These risks will influence market direction and valuations in the short term,' the brokerage said, adding that markets may consolidate in the near term with narrow participation. Axis said it is adopting a strategy focused on style and sector rotation, especially favouring domestic-facing sectors, given their insulation from reciprocal tariffs. Axis Securities pointed out that largecaps offer better value compared to the broader market, where the margin of safety is currently lacking. 'We believe quality stocks, market leaders, and monopolies from domestic-oriented sectors are well-positioned to outperform,' Axis Securities said. The brokerage is overweight on largecap private banks, telecom, consumption, hospitals, and interest-rate proxies. It also upgraded its view on retail consumption and FMCG stocks based on FY26 recovery expectations. Meanwhile, it continued to underweight IT stocks due to expected US discretionary spending cuts. Reflecting shifts in market style and risk appetite, Axis Securities made one change in its top picks—booking profits in Dalmia Bharat and adding Sansera Engineering. 'This reflects our tactical pivot towards higher-quality plays amidst ongoing market transition,' the brokerage noted. Axis Securities rolled forward its Nifty target to March 2026, raising it to 26,300. The upward revision is based on improved market sentiment, easing tariff concerns, and better earnings prospects for FY26. 'We now value the Nifty at 20x Mar'27 earnings, up from 19x earlier, factoring in favourable index changes like the inclusion of Britannia and BPCL,' Axis Securities said. It expects Nifty earnings to grow at a CAGR of 14 percent over FY23–27, driven largely by financials. In a bull-case scenario, Axis Securities sees the Nifty touching 27,600 by March 2026, valuing it at 21x Mar'27 earnings. This outlook is predicated on a 'Goldilocks' environment with reduced global volatility, a soft landing for the US economy, and a revival in private capex under a stable policy regime. Conversely, in the bear case, Axis pegs the Nifty at 22,300, based on a 17x valuation multiple. 'Challenges such as high interest rates, currency volatility, and trade disruption from potential Trump-era policies could drag down valuations,' Axis Securities warned. Aligned with its revised market strategy, Axis Securities recommended a diversified portfolio comprising domestic-facing plays and quality names. Its top picks include HDFC Bank, ICICI Bank, Shriram Finance, Avenue Supermarts, State Bank of India, Lupin, Hero MotoCorp, Max Healthcare, Colgate, Kalpataru Projects, APL Apollo Tubes, Varun Beverages, Bharti Airtel, Prestige Estates, and Sansera Engineering. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
05-05-2025
- Business
- Hans India
Charts suggest stock-specific approach
NSE Nifty continued to face strong resistance around 24,360 points. After a volatile week, the Nifty closed with 307.70 points or a 1.28 per cent gain. BSE Sensex is up by 1.63 per cent. The Midcap gained by 0.25 per cent, and the Smallcap index is down by 0.63 per cent. The Realty index is the top gainer with 2.58 per cent, followed by Auto with 1.33 per cent. The IT and Bank Nifty are up by 0.93 per cent and 0.83 per cent. The Media is the top loser with 1.71 per cent, followed by Consumer Durables with 0.97 per cent. The India VIX is up by 6.41 per cent to 18.25 per cent. The FIIs continuously bought the equities. They bought Rs2,769.81 crore in May, and the DIIs bought Rs3,290.49 crore worth of equities. The Nifty faced strong resistance around the 24,360-400 zone. On Friday, it faced resistance at the 61.8 per cent retracement level of the prior fall, and fell sharply. It formed a Shooting Star candle. Last week's Shooting Star candle failed to get the confirmation for its implications. The volumes were less than last week. However, the undertone of the market is not showing any weaker signals. The institutional buying gained momentum over the last two weeks. The Indo-Pak, geopolitical tensions remain a risk factor for the market. Due to this, the volatility index India VIX is rising for the last weeks and touched 18.25. This shows that they are enough risk-averse hedged positions were built in the market. Technically, the index formed a higher high and higher lows. The short-term average 8EMA is acting as strong support for now. It sustained above the 200DMA, which is at 24,050 points. It is the near-term support. Once the 200DMA enters into an uptrend, expect the market rally to continue. Though it closed below its previous week, strong buying support protected the fall. The index is above the 40 and 50-week averages. The 50-week average is at 23,962 points, which will be the crucial support. The 30 and 40-week averages are still in the downtrend. All the long-term averages must be in the uptrend for a strong uptrend. The weekly RSI is in the neutral zone and above the prior high. There is no divergence visible. The MACD is strongly bullish. However, the daily MACD histogram shows a decline in momentum due to range-bound trading. If the Nifty is able to close decisively above the 24,400-545 zone with high volume, expect to test 25,300 faster. If it closes below the 24,050-23,962 zone of support, it immediately tests 23,800 points. Stay highly cautiously optimistic on the trend and a stock-specific approach is needed. (The author is partner, Wealocity Analytics, Sebi-registered research analyst, chief mentor, Indus School of Technical Analysis, financial journalist, technical analyst and trainer)
Mint
28-04-2025
- Business
- Mint
Stocks to buy or sell: Dharmesh Shah of ICICI Securities suggests buying HAL shares on 28 April 2025
Stock market today: The domestic benchmark indices, Nifty 50 and Sensex, made a modest climb at the start of trading on Monday, buoyed by stronger-than-anticipated earnings from major player Reliance Industries and favorable signals from Asian markets, although increasing geopolitical tensions between India and Pakistan limited the rise. The Sensex surged by 456.05 points to reach 79,668.58 in early trading, while the Nifty 50 gained 112.85 points, totaling 24,152.20. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, mentioned that the increased uncertainty surrounding Indo-Pak tensions will impact the markets. It is quite challenging to determine the extent to which the market has factored this in. Based on the market's resilience, it appears that the possibility of these tensions escalating into a war has not been fully incorporated into market expectations. It is crucial to note that markets often have a remarkable capacity to rise despite various concerns. A significant factor behind the market's resilience is the continuous buying by FIIs, totaling ₹ 32,465 crores over the past eight days. FIIs have shifted to being consistent buyers, marking a sharp reversal from their previous selling approach. This change is largely influenced by the relative underperformance of US stocks, US bonds, and the dollar. Equity benchmark pared initial gains tracking geopolitical worries. Nifty 50 settled the week at 24,039, up 0.6%. Broader market relatively outperformed as Midcap gained 1.5%. Meanwhile, beaten down IT index staged a strong recovery post Q4 earnings, up 7% for the week. The weekly price action formed a small bull candle with long upper shadow, indicating profit booking at higher levels after recent sharp up move. However, formation of higher high-low signifies that broader uptrend remains intact. In the upcoming truncated week, we expect volatility to remain elevated tracking geopolitical worries wherein Nifty 50 is likely to consolidate in the broader range of 24,500-23,300 zone. We believe, over past two months index has formed a durable bottom. Hence, ongoing breather would help index to form higher base by cooling off the overbought condition after 12% rally seen over past three weeks and make market healthy. Over past three decades there have been three major instances of escalations due to armed conflicts in India (i.e. Kargil War, 26/11, Pulwama attack). On each occasion, it formed major bottom once anxiety around the event settled down and garnered decent returns in subsequent three months. Even in current scenario, possibility of knee-jerk reaction on escalation of geopolitical worries cannot be ruled out. However, historical evidences suggest that market would eventually stabilise. Hence, we advise not to panic but rather build quality portfolios from medium to long term perspective amid ongoing earning season. The blend of following parameters makes us believe that the index has formed a durable bottom. Tracking the historical data, benchmark index has staged a strong rebound after approaching the price and time wise correction. Key point to highlight is that, the current up move is backed by the faster pace of retracement, indicating structural turnaround that has been further validated by significant improvement in momentum, breadth as well as sentiment indicators. Amidst ongoing volatility, following are the key monitorable which would act as tailwind: a) Bilateral Trade Agreement between India and US b) Continuation of FII's inflow c) Further weakness in US Dollar index post breakdown from two years consolidation d) Decline in Brent crude oil prices 6. We expect volatility to prevail amid ongoing global uncertainty coupled with geopolitical worries. However, recent faster pace of retracement clearly indicates structural improvement that makes us revise support base upward at 23,300 which is 38.2% retracement of the move from (21,743-24,359) coincided with 200 days EMA placed at 23,405. Dharmesh Shah of ICICI Securities recommends Hindustan Aeronautics Ltd (HAL). 1) Buy HAL in the range of ₹ 4,140-4,240 for the target of ₹ 4,698 with a stop loss of ₹ 3,914. 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 25/04/2025 or have no other financial interest and do not have any material conflict of interest.
