Indian stock market is expected to witness gradual momentum towards the upside on Friday, however, volatility will continue due to concerns related to FIIs selling and India's VIX index that stayed above 20 levels amidst the ongoing election. On May 17, Prabhudas Lilladher recommended buying three stocks. Two of them are PSUs and in defence sectors, while 1 is in the automobile segment. These are Bharat Electronics (BEL), Cochin Shipyard, and Exide Industries.
Bharat Electronics (BEL) Share Price:
Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has suggested BUY on BEL shares with a stop loss of Rs 232 for a target price of Rs 250.
On May 16, BEL shares ended at Rs 237.90 apiece, up by 2.2% with a market cap of Rs 1,73,899.64 crore. The stock's 52-week high and low are at Rs 241.50 apiece and Rs 105.75 apiece respectively,
YTD, BEL shares are up by 29%. In a year, the stock gained 120% on BSE.
BEL's board meeting is scheduled on Monday, May 20, 2024, to consider and approve, inter alia, Audited Standalone & Consolidated Financial Results for the quarter and year ended 31S1 March 2024 and also to consider the recommendation of the final Dividend for the financial year 2023-24, if any.
Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force.
Cochin Shipyard Share Price:
Prabhudas analyst has advised BUY for a target price of Rs 1,430 on Cochin Shipyard with a stop loss of Rs 1,315.
On BSE, Cochin's share price stood at Rs 1345.90 apiece, up by 1.20% with a market cap of Rs 35,408.04 crore. The stock's 52-week high and low are at Rs 1,378.95 and Rs 234.53 apiece respectively.
Cochin Shipyard was incorporated in the year 1972 as a fully owned Govt of India company. In the last three decades, the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India.
Exide Industries Share Price:
The analyst has advised for buy with a stop loss of Rs 463 for a target price of Rs 494.
Exide's shares stood at Rs 472.90 apiece, up by 2.13% on BSE with a market cap of Rs 40,196.50 crore on Thursday. The stock's 52-week high and low is at Rs 485 and Rs 195.70 apiece respectively.
A leader in packaged power technology, EIL is India's largest storage battery company with the widest range of both conventional flooded as well as the latest VRLA batteries. Apart from serving the domestic market the company exports batteries which have captured niches in South East Asian and European markets.
Market Outlook For May 17:
On May 16, after a volatile start, the Indian stock market gained traction with Sensex and Nifty ending with nearly a per cent of gains. The 30-scrip benchmark surged by 676.69 points or 0.93% to end at 73,663.72, while the 50-scrip index zoomed by 203.30 points or 0.92% to end at 22,403.85.
Shrikant Chouhan, Head of Equity Research, at Kotak Securities said, "The benchmark indices witnessed a volatile trading session, after a roller coaster activity the Nifty ended 203 points higher while the Sensex was up by 677 points. Among Sectors, Reality indices outperformed and rallied 1.90 per cent whereas despite strong momentum some profit booking was seen in selective PSU Banks stocks."
For May 17, Chouhan said, "On intraday charts, it has formed strong reversal formation and it also succeeds to close above 50 and 20 day SMA (Simple Moving Average) which is largely positive. We are of the view that 50-day SMA or 22310/73500 would act as a sacrosanct support zone for the bulls. As long as the index is trading above the same, the bullish momentum is likely to continue. On the higher side, immediate resistance for the index could be 22500-22600/74000-74200. On the flip side, below 50-day SMA or 22310/73500 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions."
Further, Prashanth Tapse, Senior VP (Research), Mehta Equities said, "At a time when FIIs have been ploughing out funds from domestic equities, news of new stocks being added to the MSCI index which is expected to bring in fresh FPI flows has brought some cheers to the markets. On the election front, there are talks that the ruling BJP government will attain majority and form the government, which would mean continuity in policy reforms going ahead."
Also, Siddhartha Khemka, Head - of Retail Research, at Motilal Oswal Financial Services said, "Overall, we expect markets to witness a gradual recovery. However, concerns regarding consistent FII selling, India VIX still above 20 levels, ongoing general election polling and the outcome could keep volatility higher."
Koothupalakkal expects Nifty to find support at 22,250 and resistance at 22,600 on May 17, while the analyst expects Bank Nifty's support and resistance levels around 47,500 and 48,500.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.
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