Kotak Securities Analyst Recommends Three Short-Term Stock Picks

Market Rallies Amid Elevated Crude Prices and Weak Rupee

The Indian stock market benchmarks, the Sensex and the Nifty 50, ended higher on Wednesday, 29 April, following value buying despite elevated crude prices and the rupee's weakness amid stalled US-Iran peace talks. The Sensex closed at 77,496, rising 609 points, or 0.79%. The NSE barometer Nifty 50 gained 182 points, or 0.76%, to end at 24,177.65.

Market analysts are optimistic about the short-term outlook, with Amol Athawale, VP - Technical Research, Kotak Securities, stating that the market remains in a positive zone. However, the Nifty 50 needs to close above 24,215 for a fresh uptrend. Athawale noted that a fresh uptrend rally is possible only after the index crosses the 50-day SMA (simple moving average).

Short-term Market Outlook

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According to Athawale, once the Nifty 50 breaches 24,215, the market could retest the level of 24,315. Further upside may also continue, potentially pushing the index to the 24,450-24,500 range. On the downside, if the index slips below 24,100, market sentiment could turn negative, and the index may decline to the 23,900-23,850 range.

Stock Picks for the Short Term

Athawale recommends the following three stocks to buy for the next 1-2 weeks:

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1. Lodha Developers

• Previous close: ₹912.70
• Target price: ₹980
• Stop loss: ₹880

Lodha Developers' shares are gaining traction for a further upmove after a remarkable rally and a breather over the last few sessions. The breakout from the consolidation structure of the chart formation indicates a bullish continuation pattern, and the upward momentum in the stock is likely to persist in the near term.

2. TVS Motor Company

• Previous close: ₹3,553.90
• Target price: ₹3,660
• Stop loss: ₹3,490

TVS Motor shares, after their downward trend, are in the accumulation zone where they are trading in a range-bound mode on the daily scale. However, the recent bullish activity in the stock is indicating good strength, and the stock is expected to break out of the range and witness the bullish momentum from the current levels with a favourable risk and reward perspective.

3. ICICI Prudential Life Insurance Company

• Previous close: ₹524.35
• Target price: ₹560
• Stop loss: ₹505

After a short-term correction in ICICI Prudential Life shares from the recent highs, the downward momentum had stopped, and it consolidated for a few sessions. The stock has formed a rounding bottom chart formation and reversed its trend from its important demand zone, suggesting a revival of the uptrend from the current levels in the near future.