Stock market recommendations: According to Bajaj Broking Research, Vedanta and International Gemmological Institute are the top stock picks for today. Here’s its view on Nifty, Bank Nifty and the top stock picks for February 14, 2025:
Index View: Nifty
The Index on Thursday’s session traded with high volatility and closed marginally lower. In the process extended decline for the seventh session in a row. In the daily chart it has formed a second consecutive doji candle highlighting indecision and higher volatility. On Wednesday, it has formed a long-legged doji candle, indicating that support is emerging from the previous major low.
Going ahead, we expect the index to enter a base formation within the 23,600-22,800 range. A breakdown below the support level of 22,800 could trigger a further decline towards the 22,500-22,600 levels.
We believe Nifty after 13% correction in the last five months is approaching both pricewise and time-wise maturity. Hence the current decline should be used to accumulate quality stocks backed by strong earnings from medium to long term prospective.
Bouts of volatility cannot be dismissed due to concerns surrounding US tariff-related developments. Additionally, Prime Minister Modi’s visit to the US will be an important event to watch.
On the global macro front, amid concerns over tariffs, the US Dollar Index attempted but failed to break above the 110 mark and is currently trading near 107.5. Meanwhile, Brent crude has posted losses for the third straight week, trading around $75. A declining US Dollar Index and falling Brent crude prices are favorable for risk-on sentiment in emerging markets.
Nifty Bank
Bank Nifty has relatively outperformed during the recent decline as it rebounded on Wednesday from the 61.8% retracement of the preceding up move 47844-50641.
Going ahead, we expect the index to extend the last five weeks consolidation in the broad range of 50,500-48,000.
The Bank Nifty in the last 5 weeks has been forming base around the lower band of 2 years rising channel indicating base formation. Thus, making us believe, that the index will continue to resolve higher and move towards the mark of 51600 in the short term being 61.8% retracement of previous fall (53888 -47844). In the process, 48700-38300 shall provide immediate support.
Volatility is expected to remain at an elevated levels due to concerns surrounding US tariff-related developments.
Stock Recommendations:
Vedanta (VEDL)
Buy in the range of Rs 422-430
The stock is witnessing buying demand after forming base at the key support area of 410-400 thus offers fresh entry opportunity with a favorable risk-reward set up. The key support of 410-400 is the confluence of the 52 weeks EMA and the previous multiple lows of the last 7 months as can be seen in the chart.
Among the oscillators, the weekly stochastic is in positive trend and has recently generated a buy signal thus validating positive bias. We expect the stock to head higher towards 473 in the coming weeks being 61.8% retracement of previous major decline (526-410).
International Gemmological Institute (IGIL)
Buy in the range of Rs 464-471
The share price is rebounding after taking support at the falling trendline joining the lows of 27th December and 27th January thus offers fresh entry opportunity with favorable risk reward set up.
The stock on Thursday session has generated a breakout above a falling channel of last 7 sessions signaling reversal of corrective trend. We expect the stock to head higher towards 525 levels in the coming weeks being the 80% retracement of the previous decline (542-439).
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
