Indian Stock Market Rebounds: Outlook and Top Stock Picks by YES Securities

After five months of consecutive losses, the Indian stock market is showing signs of recovery. The Nifty 50 index surged nearly 6% in March, closing at 23,350.40 on March 21. However, it remains 11% below its September 2024 peak of 26,277.35.

 

 Market Recovery and Outlook: 

The recent rebound is driven by attractive stock valuations, improving macroeconomic conditions, and a slowdown in foreign capital outflows. Moving forward, market trends will depend on Q4 earnings, global economic factors, and domestic indicators such as monsoon performance. While long-term prospects remain positive, experts advise a cautious approach, focusing on high-quality stocks.

 

 Top Stock Picks for Growth: 

Pritesh Mehta, EVP at YES Securities, has identified ten stocks with strong growth potential:

 

1. InterGlobe Aviation (IndiGo) – Target: ₹7,000 (+39%)

Recent technical breakouts signal continued uptrend

2. Shriram Finance – Target: ₹890 (+32%)

Outperforming Nifty 50, with strong bullish indicators.

3. Tata Power – Target: ₹500 (+32%)

Recent breakout suggests renewed momentum.

4. Chambal Fertilizers & Chemicals – Target: ₹770 (+29%)

Sustained above key support levels, indicating further rally.

5. Vedanta – Target: ₹600 (+28%)

Metals sector strength and global commodity momentum support gains.

6. JSW Steel – Target: ₹1,340 (+27%)

Benefiting from a strong metal sector and positive technical patterns.

7. CG Power and Industrial Solutions – Target: ₹790 (+23%)

Recovery and bullish trend continuation expected.

8. Aavas Financiers – Target: ₹2,400 (+21%)

Sustained technical strength suggests further upside.

9. SRF – Target: ₹3,630 (+20%)

Strong fundamentals and bullish patterns indicate growth.

10. Bajaj Finance – Target: ₹10,600 (+19%)

Breaking past key resistance levels with strong momentum.

 

While the market rebound is encouraging, experts recommend selective stock picking and avoiding aggressive bets. The upcoming earnings season and global economic developments will be crucial in determining the next phase of the market's trajectory.

 

Source: Mint