Analyst Recommendation: Axis Securities Suggests Sun Pharma, Chennai Petro, and Great Eastern Shipping as Potential Buys for Next Week

Stock Market News: Benchmark Indices Sensex and Nifty 50 Decline on Thursday

The benchmark stock indices in India, Sensex and Nifty 50, experienced a decline of almost 1% on Thursday, weighed down by rising crude oil prices, weak global trends, and foreign fund withdrawals. The 30-share BSE Sensex fell by 582.86 points or 0.75%, closing at 76,913.50. At one point during the day, it dropped by 1,237.5 points, or 1.59%, to 76,258.86, but it regained some ground in the latter part of the session. The Nifty 50 decreased by 180.10 points, or 0.74%, to close at 23,997.55.

The stock and forex markets are closed today (Friday, 1 May) on account of Maharashtra Day.

Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities

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For the past couple of weeks, the Nifty 50 has been consolidating between the 23,600 and 24,600 levels, representing a short-term pause in its recent upmove. The index is well placed above the 20-day SMA of 23,881, which reconfirms a positive bias. The immediate support zone is around the 23,700-23,600 levels. On the upside, this momentum is likely to extend towards 24,500-24,800 levels.

Stocks to Buy Next Week

Sun Pharmaceutical Industries Ltd

Since October 2024, Sun Pharma shares have been consolidating between the 1,600 and 1,800 levels. However, based on recent weeks' price action, the stock is on the verge of a "down-sloping trendline" breakout at the 1800 levels. Buying momentum has returned with huge volumes, indicating increased participation near the major support zone of 1,600-1,620. Currently, the stock is well above the 20, 50, 100 and 200-day SMAs, which reconfirms bullish sentiment. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.

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Investors should consider buying, holding, and accumulating this stock.

Chennai Petroleum Corporation Ltd

As the current week closes, Chennai Petroleum shares have decisively surpassed the multiple resistance zones around the 1,100 level on a closing basis over the past couple of years. This price formation has also taken the shape of an "inverse Head & Shoulder," which indicates bullish sentiments. The stock is well placed above its 20, 50, 100 and 200-day simple moving averages (SMAs). These averages are also inching up with the price rise, which reconfirms bullish sentiment. The daily and weekly "Bollinger Band" buy signals indicate increased momentum. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.

Investors should consider buying, holding, and accumulating this stock.

Great Eastern Shipping Company Ltd

Great Eastern Shipping shares are in a strong uptrend across all time frames, forming a series of higher tops and bottoms. With the current weekly price action, the stock has also confirmed a "rounding bottom" formation, and huge volumes indicate increased participation. The daily and monthly "Bollinger Band" buy signals indicate increased momentum. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.

Investors should consider buying, holding, and accumulating this stock.