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Rajesh Palviya, an expert from Axis Securities, provides insights into the current market dynamics and identifies key stocks for potential investment opportunities. He believes the market is currently in a volatile phase with a stock-specific approach being crucial for success. While Nifty experienced a pullback from oversold levels, it remains below the 50-day moving average, suggesting a weaker trend. However, the market is expected to be range-bound between 24,700 and 25,000 for the next few days, with potential for breakout or breakdown that will determine the future direction.
Palviya highlights the positive trend in Bank Nifty, which has crossed the 50-day moving average and witnessed short-covering action. He predicts that Bank Nifty may outperform Nifty in the coming week, driven by the recovery of both private and public sector banks. Specific recommendations for the banking sector include ICICI Bank, Kotak Bank, and Federal Bank in the private space, and SBI and Bank of Baroda in the public space. These banks show technical strength and are expected to continue their upward momentum.
Palviya emphasizes the importance of a stock-specific approach in the current market, as only select sectors and stocks are experiencing positive momentum. He recommends ICICI Bank, Bombay Dyeing, and National Aluminium as potential investment options. ICICI Bank is seen as a strong performer after breaking out of a consolidation phase and is expected to reach 1300. Bombay Dyeing, having broken out of a seven-to-eight-week consolidation, holds potential for further upside, while National Aluminium, despite being in the F&O ban period, shows strength in the cash segment and is expected to outperform other metal stocks.
Source: Stock-specific approach crucial amid market volatility: Insights from Rajesh Palviya