Federal Bank, HDFC Bank, Axis Bank: What Rahul Sharma of JM Financial says on these stocks

Rahul Sharma, Director & Head - T&D Research at JM Financial, on Wednesday picked Federal Bank as one of his top stock picks. The stock has shown extremely good resilience in spite of the correction in Nifty Bank, Sharma told BT TV. "We expect that Federal Bank Ltd may test Rs 160 level anytime soon and one can buy the counter with a stop loss of Rs 145. The relative strength that the stock has exhibited should now turn into momentum once Nifty Bank finds its feet," he stated.

When asked about HDFC Bank, the market expert said that the stock is currently trading below all short-term and long-term moving averages.

"If I were to put a target then Rs 1,450 is somewhere we can expect the stock to be. It is more of a 'sell on rise' stock for now unless Rs 1,600 is not navigated decisively," Sharma mentioned.

For Axis Bank Ltd, he said there's a small breakout that can take place above Rs 1,027. Once this level gets crossed, we can see a very good momentum shaping up in the same, Sharma suggested.

In response to a query on Aditya Birla Fashion and Retail Ltd, the market expert said the counter today saw an uptick with decent volumes. One can look to hold this stock over the long-term and Rs 174 should act as support, Sharma added. Aditya Birla Fashion has completed acquisition of TCNS Clothing's 22 per cent equity shares for Rs 685 crore.

Meanwhile, Indian equity benchmarks fell sharply in early deals today, dragged by banks and financials. On the other hand, broader market (mid- and small-cap) shares were positive.

Foreign institutional investors (FIIs) sold shares worth Rs 693 crore on a net basis during the previous session, while domestic institutional investors (DIIs) bought Rs 714 crore, as per provisional stock exchange data.

12 out of the 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Bank and Nifty Financial Services were underperforming the NSE platform by falling as much as 0.92 per cent and 0.89 per cent, respectively. However, Nifty Pharma and Nifty Healthcare were up 1.07 per cent and 0.91 per cent.

On the stock-specific front, ICICI Bank was the top loser in the Nifty pack as the stock cracked 1.38 per cent to trade at Rs 935.6. HDFC Bank Ltd, Tata Steel Ltd, Eicher Motors Ltd and Bajaj Finance Ltd fell up to 1.37 per cent.

In contrast, Cipla Ltd, Dr Reddy's Ltd, Divi's Labs Ltd, LTI Mindtree Ltd and Sun Pharma Ltd were among the top laggards.

The overall market breadth was slightly negative as 1,604 shares were declining while 1,591 were advancing on BSE.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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