Nifty reclaims 9,200 and over 250 stocks hit fresh 52-week high on BSE today

Asian markets including India rose after market favourite candidate, Emmanuel Macron, won the first round of the French presidential election.

Macron will now face far-right leader Marine Le Pen in a May 7 runoff, with opinion polls on Sunday predicting an easy win for him in the final clash, said a report.

The outcome led to a mass unwinding of safe-haven trades in favour of riskier assets. The momentum picked up pace in afternoon trade ahead of the results of index heavyweight, Reliance Industries.

Experts think that the momentum is likely to continue as the system is flushed with liquidity and the index is finding support at lower levels, which is a bullish sign.

“This bottom-up stock picking will continue. Obviously, when you are in a bull market, you would have individual stocks and areas where you would find short term pockets of excesses and bubble, but on balance I think stock picking continues,” Sanjay Dutt, Director, Quantum Securities said in an interview with CNBC-TV18.

“Both fund managers as well as smart money, the private client group is looking for opportunities. Retail continues to be hesitant at the first correction, at the first pause, they tend to run and book profits, but they are also getting confidence slowly,” he said.

The rally in the market was led by realty, banks, capital goods, auto, and infrastructure stocks while healthcare stocks saw profit booking decline.

At 02:10 pm; the Nifty Bank rose was trading 300 points higher at 21,852 led by gains in HDFC Bank, Bank of Baroda, Kotak Mahindra Bank, Canara Bank, Yes Bank, Federal Bank, and State Bank of India.

The S&P BSE Realty index was trading 3.1 percent higher at 1982 led by gains in Indiabulls Real Estate which rose 6.9 percent, followed by DLF which rose 4.1 percent, and Oberoi Realty which rallied 3 percent.

The S&P BSE Capital Goods index was trading 1.6 percent higher at 17,728 supported by gains in Thermax (up 3.2 percent), Fag Bearings (up 2.7 percent), L&T (up 2.5 percent), Solar Industries (up 2 percent), SKF India (up 1.8 percent).

Here’s what experts are recommending:

Analyst: Prakash Gaba of prakashgaba.com

Ambuja Cement: The stock looks good for trading. Investors can go long in the stock for a target of Rs 255, and a stop below Rs 240.

Balkrishna Industries: Balkrishna Industries is another stock that looks good to me. Technical targets on the upside could be in the vicinity of Rs 1,475 zones, stop below Rs 1,400.

Analyst: Rahul Shah, Vice president -Equity Advisory Group, Motilal Oswal

Tata Motors: Tata Motors in automobile space has been languishing for quite some time now. The risk to reward ratio could be favourable just buying it with a stop loss of Rs 437 as the stock can go to Rs 460 levels.

Kotak Mahindra Bank: All private financials are looking quite well such as IndusInd Bank, Kotak Mahindra Bank, HDFC Bank. But, among three, Kotak Mahindra looks interesting.

“We have seen some longs added and technically also stock has done quite well. My sense is one should go long in Kotak with a stop loss of Rs 872 and target of Rs 910,” said Shah.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.