Investor Sagar Doshi Recommends Premier Energies, PFC, and Tata Power Shares for Potential Growth
Market Summary
Domestic Benchmark Indices
The Nifty 50 and Sensex continued their rebound this week, with both indices starting in positive territory on Tuesday. The Nifty 50 commenced at 23,493.20, increasing by 84.40 points or 0.36 percent, while the Sensex began at 75,824.17, rising by 321.32 points or 0.43 percent.
Market Trends
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Despite ongoing selling from Foreign Portfolio Investors (FPI), the markets displayed resilience. Foreign Institutional Investors (FIIs) sold off equities valued at ₹9,365.52 crore on Monday, as reported by exchange data. In contrast, Domestic Institutional Investors (DIIs) purchased stocks amounting to ₹12,593.36 crore.
Asian Market Performance
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng were all in positive territory, while Shanghai's SSE Composite index was trading lower. The US market closed higher on Monday.
Nifty 50 Outlook
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According to Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group, the Nifty 50 has a short-term chart setup for a buy on dip, with a target of 23,850. A closing above this level can allow for a new leg upside, while a closing below 22,900 can call for a fresh 800-1,000 point down leg.
Bank Nifty
The Bank Nifty has seen significant underperformance to the Nifty 50 from the start of this month, rapidly closing in the gap it had on a YTD basis. The index has reached a band of 53,150-53,900, which has historically acted as a strong support for corrections on the index.
Stock Recommendations
Sagar Doshi of Nuvama recommended three stocks to buy on Tuesday:
- Premier Energies Ltd (BUY): LCP: ₹795; SL: ₹840; TGT: ₹765
- Power Finance Corporation Ltd (PFC) (BUY): LCP: ₹406; SL: ₹391; TGT: ₹428
- Tata Power Company Ltd (BUY): LCP: ₹390; SL: ₹375; TGT: ₹416
Investor Takeaway
Investors may consider Premier Energies, PFC, and Tata Power shares for potential growth.
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