Kotak Mahindra Bank, SBI & PowerGrid: What Akshay Bhagwat of JM Financial says on these 3 stocks

Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, on Monday said that Nifty is witnessing a very strong run up. "One should concentrate on Nifty Bank at current high levels. In the banking space, buy Kotak Mahindra Bank Ltd for a target price of Rs 1,895, keeping stop loss placed at Rs 1,795," Bhagwat told Business Today TV.

In the PSU bank segment, he liked State Bank of India Ltd (SBI). "Traders can buy SBI for a target price of above Rs 650. Support on the counter could be seen at Rs 600," Bhagwat stated.

When asked to pick a stock from the power sector, the market expert selected PowerGrid. "There is still more steam left in the this power stock. One can buy PowerGrid shares at current levels for targets of Rs 240-245. Support on the counter will be at Rs 225," the market expert mentioned.

Meanwhile, Indian equity benchmarks continued their upward run for the second straight session today, led by gains in banks, financials and energy stocks. The 30-share BSE Sensex pack rose 223 points to hit a lifetime high of 70,048.90 while the broader NSE Nifty index moved 50 points higher to scale a fresh all-time peak of 21,019.80.

Foreign portfolio investors (FPIs) bought Indian shares worth Rs 3,632.30 crore on a net basis during the previous session. On the other hand, domestic institutional investors (DIIs) sold shares worth Rs 434.02 crore.

13 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty Financial Services and Nifty Oil & Gas were outperforming the NSE platform by rising as much as 0.30 per cent, 0.20 per cent and 0.75 per cent, respectively. However, Nifty Pharma and Nifty Healthcare slipped today.

On the stock-specific front, Coal India was the top gainer in the Nifty pack as the stock jumped 1.42 per cent to trade at Rs 356. ONGC, UPL, IndusInd Bank and UltraTech Cement gained up to 1.38 per cent.

In contrast, Dr Reddy's, Asian Paints, Cipla, Sun Pharma and Apollo Hospitals among the top laggards.

The overall market breadth was positive as 2,219 shares were advancing while 835 were declining on BSE.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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