IREDA, Suzlon and Zomato future target as per JM Financial Services
Akshay Bhagwat, the Senior Vice-President of Derivatives Research at JM Financial Services, expressed optimism on Thursday regarding the momentum in the broader indices, particularly small- and mid-cap stocks. He mentioned that an upside in the benchmark Nifty50 is expected to reach 24,750-24,800. However, Bhagwat advised investors to pay close attention to the bank index ahead of the Reserve Bank of India’s policy outcome, set to be released the following day.
Prior to the RBI event, a breakout occurred in the Nifty Bank, indicating a potential revisit to its all-time high of above 54,000. Bhagwat recommended staying invested and seeking opportunities in banking stocks, as any dips are likely to be quickly absorbed due to strong demand and momentum. He suggested purchasing both PSUs and private banking stocks for December, anticipating a decent upside from current levels. In terms of specific stocks, Bhagwat shared insights on various sectors, including renewable energy and defense.
Regarding Indian Renewable Energy Development Agency (IREDA) Ltd shares, he advised existing investors to hold onto their positions while considering adding more. The medium-term target for IREDA is set at Rs 250-260, with a long-term view projecting levels above Rs 325. When discussing Suzlon Energy Ltd shares, Bhagwat identified Rs 55-60 as a support level for the stock. He noted a gradual increase in momentum, with short- to medium-term targets expected to reach Rs 80-85.
Investors were encouraged to consider entering the stock at its current market price. In response to a question about Zomato Ltd, Bhagwat recommended partial profit booking when the stock approaches Rs 310-315 levels. He highlighted that Zomato’s stock is overbought on price charts, with high momentum. Zomato’s stock recently surged 6.36% to reach an all-time high of Rs 304.50.
The market specialist from JM Financial recommended that investors hold onto their shares of Bharat Dynamics Ltd (BDL) as a strong recovery is expected, with the stock potentially reaching Rs 1,600 in the next 3-5 months. Traders may also want to consider adding to or averaging their positions at current levels. BDL shares saw a 0.32% increase, reaching Rs 1,220.05.
In the meantime, Indian equity benchmarks have returned to positive territory in afternoon trading, marking the fifth consecutive session of gains. The upswing in domestic indices was driven by strong performances in IT, banking, financial, and energy sectors. The broader indices also showed positive movement.
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