Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, expects 25,500 to act as a strong base for the benchmark Nifty50, with 26,000 emerging as the immediate hurdle.
“The index is catching up momentum and 26,000 is the first immediate barrier. Overall, the market view remains positive and Nifty may revisit its lifetime highs,” the market expert told Business Today on Wednesday.
On the IT sector, Bhagwat cautioned that the coming months could remain challenging. He advised investors to stay away from the pack in the near term.
Sharing his view on Bharat Heavy Electricals Ltd (BHEL), which has launched an offer-for-sale (OFS) with a floor price of Rs 254 per share, Bhagwat said the corporate action may keep the stock under pressure in the short run.
“Due to the OFS corporation action, there is a good chance that the stock may remain subdued. From a short-term trading horizon, Rs 250-260 is a zone where it may remain confined. If you are looking at it with a six-month kind of view, there is a possibility that the stock could revisit Rs 300-plus levels,” he stated.
On HDFC Bank Ltd, Bhagwat indicated that the stock may continue to move within a defined range.
He suggested that it is likely to trade between Rs 900 and Rs 970, advising investors to hold the stock with a stop loss at Rs 895.
Commenting on Tata Power Company Ltd, Bhagwat described the counter as being in a neutral setup.
“From a six-month perspective, one can consider holding the stock with a stop loss of Rs 340 for potential upside targets of Rs 410-412,” he added.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
