3 stock recommendations from Rajesh Palviya in this market

“From the banking space, we like IndusInd Bank. It saw very strong buying action throughout the week and now the stock managed to give a breakout on the daily as well as weekly chart,” says Rajesh Palviya, Axis Securities. Edited excerpts:

For the week gone by, Nifty Bank was almost sitting at its record-high level. Can we see that achieved in the next week as well? What is the outlook on Nifty50?
We have witnessed a strong recovery in the Nifty as well as in the Bank Nifty from the lows. Nifty has witnessed a long build-up and Bank Nifty has witnessed a short covering action. Looking at the data set-up, Nifty is still holding the important support area of 18100 on a weekly closing basis. So as of now, the structure is still on the bullish side for the Nifty and we believe once Nifty manages to cross above 18300, then this momentum can accelerate further higher and possibly we can see short covering action in the coming trading session towards the 18450-18500 mark.

On the Bank Nifty, if we look at the data set up, 43500 was the major put base, the index has almost made a low of around 43500 and a strong reversal was seen in Friday's session. If Bank Nifty continues to hold above 43500 then possibly yes, we may get a new all-time high very soon. The index may give a breakout above 44200 and this rally can extend further because most of the banking stocks have recovered very sharply. All private banks as well as PSU banks have shown strength in Friday's session. So the profit taking which was there in the market is almost absorbed and we believe that we can see a new all-time high for Bank Nifty in the coming week.

What are your top picks in this tough market?
So the market is tough, and volatility is there, but that kind of recovery in the banking space is clearly giving an indication that we can inch up further higher to an all-time high trajectory. So from the banking space, we like IndusInd Bank. It saw very strong buying action throughout the week and now the stock has managed to give a breakout on the daily as well as weekly charts. We believe that IndusInd Bank can continue further upward momentum towards 1300 and one can buy this stock with a stop-loss of 1215.

Another stock which we like is from the real estate space. Most of the stocks from the real estate space are showing good traction in terms of buying and we like DLF. The stock managed to give a breakout of almost 12 to 15-month consolidation range and the stock is almost enjoying its 52-week high trajectory. Looking at the buying action and recovery from the recent low, we believe that DLF can continue further upside momentum and we are projecting a target of 490. One can buy with a stop-loss of 460.

The third is midcap IT stock Mastek. It has given a very strong breakout on the daily as well as on the weekly chart. The stock gave a breakout of almost 20 to 25-week consolidation range. After a big correction, now the stock has formed a bottom and the recovery in the current week is clearly suggesting that there is a reversal in Mastek. We believe that this stock can continue further towards 2030. That could be the possible target on the higher side so one can buy Mastek also with a stop loss of 1865.