Stock Recommendations: Rajesh Palviya’s Top 3 Stock Recommendations for the Week Ahead

First of all, I would like to understand the technical side, tell us now that we are approaching the September series and if you see a pretty good series in August, what we saw, 4% gain for Nifty and then 11 consecutive days of gain for Nifty especially. How to approach the month of September now because what we have seen is that for the month of September, if you look at the seasonality data, 6 out of 10 times the month of September has given negative return. But it has been a good month for the IT space. What do you have to say on that?
Rajesh Palviya: So if we look at the rollover data, it is a positive data – 77.50% rollover for the August series, which is higher than the average of the past three and six months. But in the Bank Nifty, the rollover data is on the lower side. But if we look at the structure of the Nifty, we believe that this is the 11th consecutive day where we are seeing positive flows, which clearly shows that there has been sustained buying action in the market and the market is confident of going higher. So if we look at the technical structure, we believe that this momentum can extend further. The way the overall market is participating in this up move, the largecap space is also showing good strength and sector rotation is also happening in this up move. Therefore, this clearly gives us confidence that the potential rally can extend to the 25,400 to 25,500 zone in the continuation of this bullish move.

At this moment, 25,000 has a significant concentration of put options. Therefore, I think one should trail their stop loss to 25,000, 25,100 to maintain a long position and the potential rally can extend up to 24,400 or 24,500.

For this September series, we expect the range for September series for Nifty to be 24,800 on the downside and 25,600 on the upside, this will be the possible range for Nifty. For Bank Nifty, the immediate supply zone that is placed is around 51,500 which is a very important level to cross on the upside.

If Bank Nifty crosses the 51,500 level, we may see some short covering action in Bank Nifty and then the rally may extend up to 52,000 as well. The rollover data also shows that a little stock-specific rollover action in the banking space is giving us some signal that there could be some short covering action next week for Bank Nifty and I think we may see a higher level. So, for Bank Nifty also we have a bullish view, 51,000 is your stop loss to hold the long position. On the sectoral front, the rollover action is clearly showing in pharma, metals, oil and gas. All these sectors are showing good traction in terms of rollover activity. Therefore, we believe supportive buying action may continue in pharma, auto, metals, oil & gas and FMCG, all these spaces may continue further bullish in September series.
Tell us now what we can expect from the participation of IFIs. IFIs have shown resilience, they have provided good support so far, but now IFIs have also turned to a positive trend. If you look at the data, the IFI access rate at the beginning of the September series looks very promising, almost 70%. What do you have to say about this? In which sectors do you think the money is moving?
Rajesh Palviya: Now, clearly, institutional investors have turned bullish and we are seeing positive data from the last couple of days for them and I think if this sustained buying action continues, we may see a higher level in the market. I think the flow is coming into the pharma sector as well as the IT sector, the way these two sectors have moved up in the last few days and clearly, there has been sustained buying action in both the pharma and IT sectors.

So, I think we can see good traction in both these sectors and as we have discussed before, in the case of large-cap IT as well as in the case of mid-cap IT, I think we can see further bullish momentum here. So, in the case of large-cap IT, I think that TCS and Information systems They could be analyzed from a short-term and medium-term trading perspective. These two stocks look promising. And from a mid-cap IT perspective, we believe LTTS can be one of the stocks where we can see good traction. And another stock we like is Birlasoft.

These two stocks look bullish in the mid-cap IT sector. Even in the pharma sector, many stocks are slowly moving up. Lupine It is our preferred pick in the pharma sector and we believe we can see further bullish momentum in Lupin, so one can look at this stock from the pharma sector as well and the potential rally can extend to a level similar to 2350, 2400 for Lupin.

And another action in the pharmaceutical sector is Sun PharmacyThese stocks also look promising. Therefore, we are projecting a target of 1950 for Sun Pharma, so one can try to buy and accumulate shares of this company from a short-term trading perspective as well.

Tell us now, what would be your specific recommendation? Although you talked about a lot of IT and pharma stocks, is there any specific trade that you would be considering for this entire week for our viewers?
Rajesh Palviya: So the first stock is from the pharma sector i.e. Ajanta Pharma, a midcap pharma stock and the stock managed to give a breakout of the flag and pole formation on daily chart and the way the stock gave a breakout with the volume action, we think here we might see further upside towards 3360 so it can be bought. Ajanta Pharmacy with stop loss of 3185. Another stock is from the agrochemical sector, UPL. There was a poor performance in the stock prices for a long time, but now the stock has formed a base and if we analyze the monthly weekly chart, the stock managed to break out and now the stock is mostly holding its short-term moving average. We believe that UPL You can extend your profit. We project a target at 620 with a stop loss of 592.

And the third action, which is from the banking sector and large-cap private banks, is… ICICI Bank It looks promising. The way the stock has rallied over the past two weeks and is now comfortably holding above the 1200 mark, we believe this is the third consecutive week that the stock has formed a higher high and higher low formation, clearly showing that there has been sustained buying action in this stock.

Hence, we believe ICICI can extend its gains and the stock may try to get back to the all-time high trajectory. We project a target of 1270 for ICICI Bank with a stop loss of 1205.