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Are we going to touch the 25,000 mark today?
Rajesh Palviya: Yes, definitely. Looking at the broader market action and the sentiment we have observed, there was a sentiment booster yesterday. Nifty is comfortably holding above the 24,800–24,850 zone. So, yes, we are likely to touch the 25,000 level, and this rally could extend even beyond that. The put-based concentration is shifting higher, and call writers are adjusting their positions from the 25,000 strike to the 25,200–25,300 strikes. This indicates some short-covering action in the market.
Additionally, the rally in midcap and smallcap stocks, along with sectors like automobile, oil & gas, telecom, and consumption, shows that last week’s announcement by the Prime Minister is providing a clear sentiment boost. We may see Nifty cross 25,000 soon, either today or within the next couple of days.Yesterday’s high was 25,022, and it is important for the market to move beyond 25,100 to maintain momentum above 25,000. With that in mind, what are your stock picks for the day?
Rajesh Palviya: I have two stock ideas.
First, from the automobile space: There was very strong buying yesterday, and most automobile stocks managed to break out on both the near-term and short-term charts. Based on the breakout, we are bullish on Mahindra & Mahindra. The stock is forming higher tops and higher bottoms and is moving within an upward-sloping channel on the daily chart. It is hovering near its all-time high trajectory and has shown a strong breakout on both weekly and monthly charts. We believe Mahindra & Mahindra can extend its gains, with a possible near-term target of 3,480. One can buy and accumulate with a stop loss at 3,345.
The second stock is Avenue Supermarts (DMart). After nearly eight weeks of consolidation, the stock has broken out on both the weekly and daily charts and is comfortably holding above its near-term and short-term moving averages. Derivative data also shows long build-up. We believe this stock can continue its upward movement, with a projected target of 4,730. One can buy with a stop loss at 4,590.
