Bajaj Finance, Granules Top Analyst Pick for Buying Amid Market Volatility

Market Review - March 25, 2024

Key Figures

• Nifty 50: 23,064.40 (up 152 points or 0.66% from previous trading day)
• BSE Sensex: 74,650.12 (up 581.67 points or 0.79% from previous trading day)
• Brent Crude: USD 99 per barrel (down 4.78% from previous trading day)
• Gold: ₹143,600 per 10 grams (up 3.37% from previous trading day)
• Silver: ₹234,542 per kg (up 4.82% from previous trading day)

Market Analysis

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The domestic stock markets continued to recover on Wednesday, March 25, driven by improved investor sentiment following reports of a potential ceasefire between the United States and Iran. The Nifty 50 began trading at 23,064.40, up 152 points or 0.66%, while the BSE Sensex climbed by 581.67 points or 0.79% to start at 74,650.12.

Investors remained cautiously hopeful, despite ongoing volatility stemming from uncertainty around geopolitical events. The decline in Brent crude prices to USD 99 per barrel, down 4.78%, offered some relief to global markets. In the commodities market, gold prices experienced a significant recovery, increasing by 3.37% to reach ₹143,600 per 10 grams, while silver prices also saw an increase of 4.82%, rising to ₹234,542 per kg.

Market Outlook

According to Ruchit Jain, Head - Equity Technical Research, Wealth Management, Motilal Oswal Financial Services, the recent correction in the markets was due to global geopolitical tensions, which led to a rise in crude oil prices. However, the positive news flows related to a one-month ceasefire have resulted in a pullback move in the markets for the short term.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Stock Recommendations

Ruchit Jain recommends the following stocks to buy or sell on Wednesday:

• Bajaj Finance: CMP at ₹849, SL at ₹800, TGT at ₹935
• Granules: CMP at ₹606, SL at ₹580, TGT at ₹650

Technical Analysis

The stock has formed a 'Bullish Hammer' pattern on the daily charts, which is a trend reversal pattern. The RSI readings are in the oversold zone, and the volumes have increased post the formation of this pattern. Hence, short-term traders are advised to buy Bajaj Finance with a stop-loss below ₹800 for a potential target around ₹935.

The stock has seen some consolidation in the last one month, and the 200 DEMA has acted as a good support in this consolidation. Prices are on the verge of a breakout now, and the daily and weekly momentum readings are hinting at a positive momentum. Hence, short-term traders are advised to buy Granules with a stop-loss below ₹580 for a potential target around ₹650.