Three stock picks from Rajesh Palviya for the week ahead

What do you think the benchmark indices will do over the next week and give us some key levels you are spotting?

If we look at the overall structure, we are still on the bullish trajectory for both indices, but still Skilled The Nifty price is struggling to cross 24,900, 25,000; that level is catching up with more call option buying activity. Therefore, 25,000 is a strong resistance at the moment for the Nifty and we could see some short covering action if we can break above the 25,000 level. Looking at the data setup, the major put option-based concentration is around the 24,700, 24,600 strikes. Hence, any minor dip towards 24,700, 24,750 zone is a buying opportunity in the market and one should keep their stop loss around 24,600 to hold a long position in the Nifty as well and we believe that maybe in the next week we may see an attempt to cross the 25,000 level in the Nifty as broader market is showing good traction in terms of buying which clearly shows that the sentiment is there on the street even at a higher level.

Nifty Bank The Bank Nifty is still struggling to cross the 51,000 mark which is the challenging level right now for it. But the way most of the PSU banks as well as some of the private banks or the large-cap banks have recovered from their recent low, that is clearly giving us a signal that maybe Bank Nifty may try to cross the 51,000 level in the next week as well and if that happens then this rally may extend to the 51,500 zone as well because major call option writers need to cover their position if it crosses above 51,000 so that is the level to watch on the upside. But on the downside, 50,600 is the immediate stop loss where one can hold on to the current level and maintain their long position for Bank Nifty as well. We believe that sectors like auto, pharma and fertilizers can be considered for the next week where we can see good traction.

What sectors do you think are worth watching next week?

For the upcoming week, Pharma is one sector we will focus on, Auto is another sector and IT is definitely on our radar because most of the IT stocks have almost shown a good breakout and large cap IT stocks like TCS is almost hovering around its all-time high trajectory. Even the IT index has hit an all-time high in this current week as well. So, we believe that here we can see good traction. From the IT space, one can focus on TCS. We believe that resumption of the rally would be there and we can see further higher levels in TCS. So, TCS The L&T Technology Services market looks attractive. We project a target towards 4650 on the higher side. A stop loss can be kept around 4390 to go long on TCS. And from a mid-cap IT space, L&T Technology Services also looks very promising. The way the stock managed to give a breakout on the weekly chart, we believe that here we can see traction towards 5700 to 5800. Hence, L&T Technology Services can be considered a buy option with a stop loss of 5390. The other sector as I mentioned, pharma, also looks promising. We continue with our bullish view on the stock. Sun Pharmacy We believe that we can see a continuation of the uptrend here and a possible rally towards 1850 or 1860. Therefore, Sun Pharma is a good buy with a stop loss of 1740. Another pharma stock that looks attractive is Glenmark. This stock is continuously moving in an uptrend and the way it is trading on a record high trajectory, we believe that we can see a continuation of the uptrend here and a possible rally that can extend to a zone of 1750 or 1780. Therefore, Glenmark also looks promising with a stop loss of 1640.

New age stocks have been performing well and have moved up from their 2024 lows. Take Paytm, Zomato, Nykaa, CarTrade for example, all these stocks have performed phenomenally in the last few weeks. And of course, there was the big trigger for Zomato and Paytm, the transfer of that ticketing business. What is your view on this sector going forward? Do you think there is some stability in this up move or some support that we can really go ahead and book with confidence now? Would it be a good time to buy a couple of these names?

There has been strong buying demand in all the stocks you mentioned. These new generation companies have shown strong buying demand in the last few days. Wank has broken above the 200 level, we believe that so far, the stock is holding above the 210 level. There is still a possibility that we may see another round of rally in Nykaa and a possible target towards 240, 250 could be there on the upper side.

Zomato is holding higher. The stock has rallied in the last few months and we believe there is potential for further upside up to 300-320 levels. So, I think one can take some trades here too on any minor dip if one enters a volatile market. We are bullish and until the stock sustains above the 240, 245 zone, I think one should take advantage of any minor dip to take long-term trades in Zomato.

Paytm has also rallied quite a bit in the last two weeks. The way the stock is moving in the ascending channel on the weekly chart clearly shows that there has been sustained buying action in this stock in the last two weeks. The way the stock is holding above the 540, 530 mark, we may see another round of rally in this stock. The immediate supply zone lies around the 580, 590 zone. If those levels can be crossed, then this rally may extend to 630 as well. Therefore, I think there has been fresh buying interest in this entire new generation company. We believe that we might see more traction in the near term.

What specific actions are you considering at this time?

The first action is InterGlobe AviationThere has been a very strong breakout of almost 8-10 weeks consolidation in this stock. There is a prolonged build up in the derivatives data. The way the stock managed to give a breakout of the 8-10 weeks consolidation, it is now trading at an all time high trajectory. We believe this stock may have potential to go higher further, 4950 is where we are projecting a new target for the stock on the higher side and one can buy this stock with a stop loss of 4600.

The second stock belongs to the mid-cap segment i.e. Craftsman. Craftsman again recorded a new all-time high trajectory in today’s trading session. The way the stock has again managed to break its previous high with the volume action, the short-term and near-term indicators are on an upside trajectory. Therefore, Craftsman can be considered a buy option; 6150 to 6200 could be the next target from a positional perspective and a stop loss can be kept around 5820.

The third action is from the telecommunications sector, i.e. Bharti Airtel. The bullish trend continues in the market. A slight profit-taking again attracted buying interest at the lower level. The way the stock is holding above its important moving average has managed to break its descending trend line on the daily chart, so we believe that here we can further see a continuation of the bullish trend; 1550 would be the next target for the stock, keep your stop loss around 1485.