Despite Dalal Street Carnage, THESE 6 Nifty 50 Financial Stocks Jumped Up to 14% in Last 1 Month. Should You Buy?
The Indian Stock Market Selloff Continues, but These 6 Financial Stocks Defy the Trend
The Indian stock market has been facing a severe selloff, with the Nifty 50 index declining 13% since October last year. The index is now 14% below its all-time high of 26,277.35, reached on September 27. Despite this, six financial stocks among the Nifty 50 have bucked the trend and risen up to 14% over the past month. But should you buy these stocks?
Bucking the Trend
Despite market volatility, shares of these large financial companies have risen, driven by attractive valuations and relatively better December-quarter (Q3FY25) results.
Top Gainers
- Bajaj Finance: With a gain of 14%, Bajaj Finance is the top gainer of the Nifty 50 index over the last one month. Experts suggest investors consider booking some profit in the stock at this juncture.
- Shriram Finance: Shriram Finance’s share price has gained 9% in the last month, with a breakout from a falling parallel channel. If the stock manages to hold above the ₹600- ₹620 range, it could signal a strong confirmation of the trend reversal.
- IndusInd Bank: IndusInd Bank’s share price has risen 9% in the last month, with a consolidation around the R1 pivot. A breakout above ₹1,055 could lead to a momentum shift towards ₹1,150.
- Bajaj Finserv: Bajaj Finserv has jumped 8.5% in the last month, with a pattern of higher highs and higher lows indicating a sustained bullish reversal.
- Axis Bank: Axis Bank’s share price has risen 6.4% in the last month, with signs of stabilization above the 200-week EMA, a historically significant demand zone.
- Kotak Mahindra Bank: Kotak Mahindra Bank’s share price has gained 4% in the last month, with a bullish trend reinforced by trading above the 21-day EMA and the 200-day EMA.
Should You Buy?
While these stocks have defied the market trend, it is essential to exercise caution and wait for confirmation of price action before entering positions. Tech-specific analysts provide their insights on these stocks, highlighting potential targets, resistance zones, and risks.
- Bajaj Finance: Short-positioning is advised at ₹8,400-8,500, with a target of ₹7,600 and a stop-loss at ₹8,800.
- Shriram Finance: Traders should monitor price action closely for confirmation before taking positions, with potential targets at ₹650-680.
- IndusInd Bank: If the stock closes above ₹1,055, it could gain momentum towards ₹1,150.
- Bajaj Finserv: The ₹1,900 range is expected to act as a strong resistance zone, with a potential uptrend towards ₹2,000.
- Axis Bank: Any dip towards ₹1,000-980 is likely to attract fresh buying, with a potential upside towards ₹1,105, followed by ₹1,120.
- Kotak Mahindra Bank: A minor pullback towards ₹1,920-1,930 can offer a buying opportunity, with a potential uptrend towards ₹2,100.
Expert Insights
- Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers: "We advise a short position in the ₹8,400-8,500 range, with a target of ₹7,600 and a stop-loss at ₹8,800 on a daily closing basis."
- Hardik Matalia, Derivative Analyst at Choice Broking: "If the stock manages to hold above the ₹600- ₹620 range, it could signal a strong confirmation of trend reversal, paving the way for further upside momentum."
- Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services: "We expect any dip towards ₹1,000-980 to attract fresh buying, with a potential upside towards ₹1,105, followed by ₹1,120."
Investors are advised to consult with certified experts before making any investment decisions. The views and recommendations made in this article are those of individual analysts or broking companies and not those of Mint.
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