IndusInd Bank & Vedanta: What Akshay Bhagwat of JM Financial says on these 2 stocks

Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, on Tuesday said that the ongoing rally in domestic stocks may continue. "Support for benchmark Nifty could be seen in the 20,400-20,500 zone. Till the mentioned support levels hold, one can expect a higher target of 21,000 for the index," Bhagwat told Business Today TV.

The market expert selected IndusInd Bank Ltd as one of his top picks. "The stock has gained some momentum and it could be setting up for a strong upside. Support zone is at Rs 1,460. Buy IndusInd Bank shares at current levels for a target price of Rs 1,562. Extended target would be Rs 1,577. Keep stop loss placed at Rs 1,477," he stated. The lender's counter was last seen trading 0.04 per cent up at Rs 1,514.75.

The other stock which Bhagwat suggested was Vedanta Ltd. "The stock is setting up for a breakout. Buy Vedanta shares at current market price for a target of Rs 256 and an extended target of Rs 261 with a stop loss of Rs 234," the market expert from JM Financial mentioned. The stock was down 0.19 per cent at Rs 241.35.

Meanwhile, Indian equity benchmarks continued their strong up move today to scale their fresh lifetime highs. The 30-share BSE Sensex pack rose 442 points to hit an all-time high of 69,306.97 while the broader NSE Nifty index moved 126 points up to touch a record high of 20,813.10. Broader market (small- and mid-cap shares) were also positive.

Foreign portfolio investors (FPIs) bought Indian shares worth Rs 2,073 crore on a net basis during the previous session. Domestic institutional investors (DIIs) added shares worth Rs 4,797 crore.

14 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty FMCG, Nifty Consumer Durables and and Nifty Oil & Gas were outperforming the NSE platform by rising as much as 0.66 per cent, 0.46 per cent, 0.44 per cent and 0.77 per cent, respectively. However, Nifty IT slipped 0.60 per cent.

On the stock-specific front, Adani Ports was the top gainer in the Nifty pack as the stock jumped 4.48 per cent to trade at Rs 918. Adani Enterprises, BPCL, Axis Bank and M&M gained up to 4.10 per cent.

In contrast, HCL Tech, Infosys, Bajaj Auto, LTIMindtree and Tech Mahindra among the top laggards.

The overall market breadth was positive as 2,070 shares were advancing while 766 were declining on BSE.

On the 30-share BSE index, HDFC Bank, ICICI Bank, Axis Bank, Reliance Industries, SBI and M&M were among the top gainers.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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