Akshay Bhagwat, Senior Vice-President of Derivatives Research at JM Financial Services, on Thursday said the momentum in broader indices (small- and mid-cap stocks) can be seen improving. "For benchmark Nifty50, we expect an upside till 24,750-24,800. But one should be looking at the bank index ahead of the Reserve Bank of India's policy outcome, scheduled to be released tomorrow. Prior to the RBI event, a breakout happened in Nifty Bank, which promises the sub-index to revisit its all-time of above 54,000. So, stay invested while looking for opportunities in banking scrips as dips will be absorbed fast, given the strong demand and momentum. Both PSUs and the private banking spaces should be bought for December, expecting decent upside from current levels," the market expert told Business Today.
On the stock-specific front, Bhagwat also shared his views on select stocks, ranging from the renewable energy sector to defence. In response to a query on Indian Renewable Energy Development Agency (IREDA) Ltd shares, he said, "Exiting investors should continue to hold the stock while one can consider adding it as well. Rs 250-260 levels will be the medium-term target with a time horizon of a couple of months. From a long-term view, Rs 325-plus levels are seen to be in the making." IREDA shares were up 2.35 per cent at Rs 222.10.
When asked about Suzlon Energy Ltd shares, the market expert said, "Rs 55-60 will be the support level on the counter. It is slowly picking up momentum and we may anticipate targets of Rs 80-85 in the short- to medium-term. One can also consider entering into the stock at the current market price." Suzlon was trading 0.35 per cent lower at Rs 67.48.
Responding to a question on Zomato Ltd, Bhagwat said, "Investors should consider partial profit booking when the stock trades near Rs 310-315 levels. Zomato is overbought on price charts and the momentum is quite high." Zomato's stock jumped 6.36 per cent to hit an all-time high of Rs 304.50.
For Bharat Dynamics Ltd (BDL), he mentioned that investors can hold on to the stock as a strong recovery can be seen. "We can expect Rs 1,600 level in the next 3-5 months. Traders can also consider adding or averaging at current levels," the market specialist from JM Financial stated. BDL shares were up 0.32 per cent at Rs 1,220.05.
Meanwhile, Indian equity benchmarks returned to positive territory in afternoon trade, extending their gains for the fifth consecutive session. The sharp upmove in domestic indices was supported by IT, banks, financials and energy stocks. Broader indices were also positive.