Here are top stocks to check out for the day
The stock market hit a new high on Wednesday as BSE Sensex crossed the 62,585 level for the first time in its history and hit a new lifetime high at 65,588. However, the National Stock Exchange (NSE) Nifty index missed the opportunity to hit a new record high as it recoiled from its intra-day highs of 18,875, which is only 12 points from its record high level of 18,886.
Nifty banking, Nifty financial services and Nifty information technology led the sectoral indices in positive territory. The sectoral indices in negative territory were Nifty food and consumer goods, Nifty realty and Nifty metal.
Investors attributed the record-setting rally to continued foreign capital inflows in domestic equity markets, underpinned by robust macroeconomic fundamentals that have set India on the trajectory to become the world’s fastest growing economy this year.
Vinod Nair, Head of Research, Geojit Financial Services, said,"Despite hitting record highs, the domestic market failed to sustain its upward trajectory due to prevailing concerns over global issues and a delayed monsoon. Furthermore, market volatility was exacerbated by consecutive days of net selling by FIIs, while mid-cap stocks maintained their steady gains. Meanwhile, in the global market, sentiments were dampened as UK CPI inflation came in hotter than expected, adversely affecting investor confidence."
As Sensex made record closing, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "Sensex rallying to all-time-high is in tune with the global rally in stock markets. Most markets are at 52- week highs. Last year, global markets had corrected discounting a US recession early this year and its impact on global growth and corporate earnings. But this didn’t happen and markets are compensating for this overreaction of last year., In India, a sustained rally beyond the record highs is difficult since valuations are rich. Further rally, beyond a point, will not have fundamental support."
Forecast For Today
Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "In tune with the International Yoga Day, the market is slowly stretching both ways, without any sharp up or down moves. However, the broad market trend is up."
He added, "It is important to understand that this is a global rally with most markets - US, Euro Zone, Japan, South Korea, Taiwan - hovering around 52-week highs. India is near new record highs. Globally markets are bullish even when global growth is sluggish. The reason for this bullish trend is that the US recession, which markets had discounted last year, didn’t happen and there are indications that the US might avoid a recession. So, markets are correcting the wrong discounting of last year.”
Talking about the mid cap and small cap stocks, he said, " In India there is big action in mid and small-caps and this is likely to continue. Even though valuations are rich, the value in large-cap banking stocks which has corrected. Leading indicators, particularly the sustaining credit growth, augur well for high quality banking stocks.The big wall of worry for the bulls is the dismal performance of the monsoon showing deficiency over 50 % till 15th June."
Here are top stocks to check based on the recommendation of Anuj Gupta, Vice President, Research, IIFL Securities
1) Powergrid: The stock has a strong breakout followed by engulfing candlestick pattern with substantial volumes.
Buy Powergrid, SL 234, Target 265.
2) HDFC Bank: The stock is showing strength on the charts. It is fundamentally and technically strong. There is higher top, higher bottom formation.
Buy HDFC bank , SL 1578 Target 1660.
Here are some Intraday stoclks for the day recommended by Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd
1) Buy Zensar Tech at 407 stoploss 400 Target 430
2) Buy Motherson at 85.80 stoploss 84 Target 91
3) Buy ONGC at 160 stoploss 158 Target 167