The brokerage said PNB Bank, Hindalco, LTI Mindtree, GAIL and ONGC are the ‘thrust’ stocks, while Reliance Industries and ITC are the ‘bargain’ picks.
“After five weeks of red, finally there is some green on weekly charts and that too a decisive one,” said Rahul Sharma, director, JM Financial Services in a note dated September 3. “19,230 was the final failed blow by the bears and a close above 20 DEMA of 19,404 has opened flood gates for a big upside in September.”
JM advises clients to “stay long. Stay bullish aggressively with a stop loss of 19,230.”
The brokerage expects a shift in investor interest from mid- and small-caps to large-caps and has advised booking profits. It said momentum indicators are suggesting mid- and small-cap stocks are overbought after the recent run-up.The BSE Midcap index has risen almost 25% so far in 2023, while the small-cap index has advanced nearly 30% in this period. Sensex and Nifty have gained 7.3% each.
JM said the Bank Nifty, which saw liquidation of bearish bets on Friday, can also expect an upside above 44,570. The index closed at 44,578 on Monday. Now, Bank Nifty could touch 45,000 and 45,471 levels.”IT (information technology), PSE (public sector enterprises), metals and chemicals remain our favoured sectoral bets going into the rest of 2023,” said Sharma.
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