Stock market recommendations: According to Bajaj Broking Research, Lemon Treel Hotels and Electrosteel Castings are the top stock picks for today. Here’s its view on Nifty, Bank Nifty and the top stock picks for April 25, 2025:
Index View: NIFTY
Benchmark indices traded in a range with corrective bias on the Monthly expiry session on Thursday after surging nearly 9% over the preceding seven sessions, fueled by a mix of positive factors. Heavyweight stock buying, a weakening U.S. dollar, and declining crude oil prices boosted overall investor sentiment. The rally gained further traction with progress in trade talks with the U.S. and the extension of reciprocal tariff exemptions.Banking stocks were at the forefront of the gains as Bank Nifty rallied to a fresh all time high, lifted by easing of CPI data and an encouraging monsoon forecast—both of which reinforced expectations of a more aggressive rate-cutting cycle by the Reserve Bank of India.
Nifty during the current week extended up move and formed a fresh high for CY25 at 24,359. The index closed the Thursday session at 24,246 levels.
Index trends remain firmly positive, we expect the index to maintain a positive bias and head towards 24,550 being the 61.8% retracement of the entire decline (26277-21743) and then towards the December 2024 high of 24,850 in the upcoming weeks. Only a breach below Wednesday low (24120) will signal a pause in the current up trend.
The daily stochastic is placed at an overbought territory after a sharp 1,900-point rally in the past 8 sessions. Hence, some consolidation at higher levels cannot be ruled out. A breach below Wednesday’s low (24,120) can lead to some consolidation in the range of 24,350-23,800.
We revise the support base higher towards 23,800 levels, being the Monday’s gap area and the recent breakout area. Index sustaining above the same will keep the short-term bias positive and dips should be viewed as buying opportunities. Stock specific action will continue to remain under focus as we progress through the Q4 earnings season.
NIFTY BANK
- Bank Nifty after a strong rally of 5,800 points or 11% in just seven sessions, witnessed marginal profit booking in the last two sessions. The recent rally was led by robust institutional accumulation in frontline banking counters and a notable revival in FII inflows—reflecting a clear risk-on undertone. Rate cut hopes and positive results of the large cap private Banks boosted sentiment. The Reserve Bank of India (RBI) has issued the final guidelines on the Liquidity Coverage Ratio (LCR), significantly easing norms and providing a substantial boost to system-wide liquidity thus helping to improve sentiments for the financial companies.
- Bank Nifty has rallied to a fresh all time high and has generated a breakout above 7 months broader range (54,450-48,000). It has also registered a faster retracement of the five-month correction in just two months, signaling renewed strength.
- Daily stochastic has approached overbought territory after an 11% rally in just 7 sessions. Hence, failure to move above 56,000 levels will lead to some consolidation in the range of 54,400-56,000 in the coming sessions. The immediate support base is placed at 54,000-54,400 levels, being the Monday’s gap area and the recent major breakout area.
- While a breakout above 56,000 levels will open upwards towards 56,800 zones in the coming weeks. Additionally, the Bank Nifty/Nifty ratio chart has broken out of a consolidation range, suggesting continued relative outperformance in the medium term.
Stock Recommendations:
Lemon Tree Hotels
Buy in the range of Rs 143-146
The stock has generated a breakout above a falling supply line joining highs of January and February 2025 signaling resumption of up move and offers fresh entry opportunity. The stock is also sustaining above the short- and long-term moving averages
We expect the stock to maintain positive bias and head towards 162 levels in the medium term being the previous major high of January 2025.
Electrosteel Castings
Buy in the range of Rs 108.00-111.00
The share price of Electrosteel Castings has generated a breakout above the last 2 months range (108-88) signaling reversal of the corrective trend and also closed above the 50 days EMA.
The daily 14 period RSI is in uptrend thus supports the positive bias. We expect the stock to head towards 128 levels in the medium term being measuring implication of the last 2 months range breakout (108-88).
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
