1. FirstSource Solutions Ltd
- Recommendation: Buy
- Entry Price: ₹341
- Target Price: ₹360
- Stop Loss: ₹330
Analysis: FirstSource Solutions has been performing well within its technical range, and Parekh sees an opportunity for short-term gains. With a buy recommendation at ₹341, the stock shows potential to rise towards ₹360, driven by positive momentum in the market. The stop loss at ₹330 provides a safety net for investors, ensuring minimal downside risk if the stock does not follow the expected upward trend.
2. Dr Reddy’s Laboratories Ltd
- Recommendation: Buy
- Entry Price: ₹6,701
- Target Price: ₹7,000
- Stop Loss: ₹6,600
Analysis: Dr Reddy’s Laboratories is one of the leading pharmaceutical companies in India, and Parekh believes there’s a solid opportunity for growth. With a target price of ₹7,000, she expects the stock to rally, given its strong fundamentals and positive sentiment in the pharma sector. The recommended stop loss at ₹6,600 helps investors protect their capital in case the stock price moves unfavorably.
3. NOCIL Ltd
- Recommendation: Buy
- Entry Price: ₹283
- Target Price: ₹300
- Stop Loss: ₹273
Analysis: NOCIL, a leading player in the chemicals sector, is seen as a good pick for intraday trading. Parekh has set a buy price of ₹283 and expects the stock to move towards ₹300, which represents a significant short-term gain. The stop loss at ₹273 ensures that investors can limit their risk in case of market volatility.
Broader Market Outlook
In her broader market commentary, Parekh pointed out that the Nifty 50 has continued its strong upward momentum, crossing the 26,000 mark for the first time. She highlighted that the trend has been bolstered by multiple factors, including the US Federal Reserve’s recent 50 basis points (bps) interest rate cut, which has significantly improved investor sentiment and risk appetite. The Nifty 50 is now expected to reach 26,400 in the coming sessions, with the current support level standing at 25,900 and resistance around 26,200.
Regarding the Bank Nifty, Parekh indicated that while the index has paused its strong rally, the overall trend remains intact. A decisive move above 54,200 could trigger fresh buying interest and push the index towards 55,100 and 56,600 levels. The key support level to watch for Bank Nifty is around 53,000, and the daily trading range is expected to be between 53,800 and 54,600.
Market Context and Commodity Update
On the back of the US Fed’s rate cut, Indian equities have been rallying, and both the BSE Sensex and NSE Nifty 50 have reached all-time highs. However, mid-cap and small-cap indices showed some weakness, ending lower due to a lack of local triggers.
In the commodity markets, gold prices surged to fresh highs, driven by expectations of another rate cut by the US Fed and a softer US dollar. Gold futures in the US rose by 0.6% to $2,691.40, and back home, they were trading at ₹75,148 per 10 grams, hitting an intraday high of ₹76,000 on the MCX.
Crude oil prices, on the other hand, saw a decline, dropping by over 2% as supply concerns from Libya eased. Despite China’s stimulus plans, demand concerns still weighed on the market. Brent crude settled at $73.46 per barrel, while US West Texas Intermediate (WTI) crude slipped to $69.69 per barrel.
In conclusion, Parekh’s stock recommendations reflect a cautious yet optimistic view of the market, with a focus on stocks that have solid support levels and potential for upward movement. Investors are advised to keep an eye on the key indices and commodity price fluctuations, which could influence broader market sentiment in the coming days.
