Stocks to buy: Sagar Doshi suggests AJAX Engineering, Elgi Equipments, KFin Technologies shares to buyAI Quick ReadStock market today: The domestic benchmark indices advanced on Tuesday, April 21 supported by gains in financial stocks after the Reserve Bank of India eased some restrictions on rupee derivative trading. Improved sentiment was also driven by steady domestic earnings and optimism around potential U.S.-Iran peace talks.
The Nifty 50 rose 0.55% to 24,499.30, while the BSE Sensex gained 0.64% to 79,022.11 as of 10:27 IST. Financial stocks led the rally, with heavyweight lenders advancing about 0.5%, and broader banking indices—including private and state-run banks—rising around 1% each.
The RBI’s move, which partially reverses earlier curbs aimed at stabilising the rupee after its slide to record lows, has helped ease concerns over potential losses for banks and improved overall market confidence.
Nifty 50 continued to show strength on Friday adding another +150 point in gain bringing last week’s tally to over +750 gains on the index. To start this week prices have reclaimed its hurdle of 24,250-24,262 which it was facing for the past 2-3 trading sessions allowing an extended upside for 24,750-24,800 in this leg. Support for this trade is seen below 24,100.
Bank Nifty as well saw nearly 500 points in gain on Friday as the index continues to trade above the 50% retracement mark. It has reclaimed the 56,400 mark on a daily and weekly closing basis which was acting as supply zone and hence can now move forward towards 57,100 / 57,650. With both indices closing flat to start the week ahead of the timeline ending of ceasefire between US-Iran, markets are likely to remain volatile and we would continue to follow the price action data therein.
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - AJAX Engineering Ltd, Elgi Equipments Ltd, and KFin Technologies Ltd.
Stock saw nearly 50% drawdown from its all-time highs to all time lows in a span of less than a year. While the stock has recently seen a sharp rebound which has resulted to a bullish trendline breakout which remained in play for the past 6 months. Clubbed with this, there is an inverted (bullish) head and shoulder formation as well on short term charts which open for a quick 10% rally from CMP.
Technically, the stock is attempting a breakout from an 18-month descending trendline, a key resistance across timeframes. It has reclaimed its 200-week moving average, signalling downside exhaustion. Momentum indicators support the move, with RSI divergence and a trendline breakout. This improving setup suggests a potential 7-9% upside, indicating strengthening trend continuation ahead.
15-month trendline breakout has been confirmed on daily and weekly charts of KFin Technologies. Adding to this a strong base has formed below 900 last month as the stock did not see incremental selling pressure in a phase wherein the frontline and broader markets saw sharp cuts. Initial bounce of 7-8% upside cannot be ruled out at this space.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players.
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