Nagaraj Shetti Favors Syrma, Transformers and Rectifiers for Investment Consideration

Stock Market Rallies on Easing Oil Prices and Hopes of US-Iran Peace Deal

The domestic benchmark indices Nifty 50 and BSE Sensex traded higher in early deals on Thursday, April 16, tracking gains in Asian markets as easing oil prices and hopes of a potential US-Iran peace deal boosted investor sentiment. The Nifty 50 rose 0.13% to 24,263.85, while the Sensex gained 0.15% to 78,228.08 as of 11:41 IST, extending momentum after both indices hit a one-month high in the previous session.

Sentiment was supported after US President Donald Trump said Israel and Lebanon would hold talks later in the day. Additionally, reports indicated that Iran may allow ships to pass freely through the Omani side of the Strait of Hormuz as part of ongoing negotiations, easing supply concerns. Sectorally, 11 of the 16 major indices traded in the green, while broader markets remained positive, with small-cap and mid-cap indices rising 0.5% and 0.3%, respectively.

Market analysts are optimistic about the market's momentum. Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities, notes that the upside momentum continued in the market so far Thursday and Nifty 50 is currently trading higher by 65 points. The recent upside gaps of 8th and 15th April remain unfilled, which is a positive indication and signals more upside.

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Nifty 50 is currently placed at the hurdle of 24,400 levels (previous opening down gap of 9th March). There is a possibility of consolidation or minor weakness from the highs, which could be a buying opportunity for the short term. On the move above 24,400, Nifty 50 could reach towards the next hurdle of 24,800 levels in the near term. Immediate support is placed at 24,100 levels.

Two stocks that analysts recommend for short-term gains are Syrma SGS Technology and Transformers & Rectifiers. Syrma SGS Technology's share price has been in a sharp uptrend over the last few weeks and has broken above the crucial hurdle of ₹900-910 levels. Analysts recommend buying the stock at ₹937, with a target of ₹995 and a stoploss of ₹910. The timeframe is one week.

Transformers & Rectifiers share price has shifted into a sustainable bounce back so far this week, placing it at the edge of a decisive breakout of a down sloping trend line at ₹910-915 levels. Daily RSI has turned above 60 levels, indicating strengthening upside momentum in the stock price. Analysts recommend buying the stock at ₹310, with a target of ₹330 and a stoploss of ₹300. The timeframe is one week.

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