On Tuesday, the domestic equity indices succumbed to fag-end selloff and ended lower for the day. The benchmark Nifty 50 and Bank Nifty hit their record high on April 30.

The Sensex ended 188.50 points, or 0.25%, lower at 74,482.78, while the Nifty 50 settled 38.55 points, or 0.17%, lower at 22,604.85.

Investors now watch out for the US Federal Reserve meeting outcome for further clues on interest rate cuts. 

The Indian stock market is closed on Wednesday, May 1, on account of Maharashtra Day.

Read here: Share market holidays 2024: Is Indian stock market closed on 1st May?

Nifty 50 Outlook by Sagar Doshi

Nifty hit a fresh all time high on the last trading day of calendar month – April 2024 ending with MTD gains of 1.24%. A huge round of short covering was seen on index futures from the FII desk, where they cut the short position from 99,000 to less than half of 45,000 contracts. 

Initial targets of 22,700+ have been complete and Nifty could consolidate between 22,550 and 22,800 for this truncated week. Any breakdown below 22,550 is likely to allow further negative views on the index. For now a range bound view is likely to play out for the week to come while broader markets are likely to steal the show on the buying front, said Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group.

Also Read: April Market Review: Nifty 50 soars for 3rd straight month, gains 1.2%; metal index top performer

Bank Nifty Outlook

Bank Nifty dropped close to 750 points from its intraday highs in the last hour of trade on Tuesday, negating its outperformance of this week over the Nifty. Yesterday’s price action suggests that an underperformance of Bank Nifty over the Nifty is likely to continue for the next couple of trading sessions which is likely to drag the index lower towards 48,600 odd, Doshi said.

Erosion of futures premium in the start of fresh derivative series is also suggesting some cool off on long positions for the index. Bank Nifty has also completed its Fibonacci Extension targets of 49,800 and faced rejection from the same. All of these point towards an underperformance for the coming week on the index, he added.

Also Read: Stocks to buy or sell: Sumeet Bagadia recommends 5 breakout stocks for tomorrow

Top Stock Recommendations by Sagar Doshi

On top stock recommendations, Sagar Doshi has recommended three stocks for tomorrow – L&T Finance, Prestige Estates Projects and Lupin.

L&T Finance | BUY | Stop Loss: ₹161.00 | Target: ₹179.00

L&T Finance shares witnessed a change in trend early 2023 as the stock gave a breakout from the trendline active since the all-time high. Since then, all swing breakouts have resulted in a favorable trade. L&T Finance stock has also been an outperformer in the sector. A swing breakout with a rise in volumes indicates the reinforcement of bullish momentum.  

Prestige Estates Projects | Buy | Stop Loss: ₹1,330 | Target: ₹1,475

Prestige Estates Projects shares have registered a fresh all time high close for itself. Momentum indicator has also crossed its previous swing high indicating bullish momentum in the stock.   

Lupin | Buy | Stop Loss: ₹1,587.00 | Target: ₹1,760

Lupin share price ended its 1 month consolidation as prices closed above ₹1,640 for the first time since mid-March. A positive cross over in momentum indicator affirms this bullish swing is likely to continue further.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 01 May 2024, 08:08 AM IST