Top Stock Recommendations: Sagar Doshi of Nuvama recommends L&T Finance, Prestige Estates and Lupin for tomorrow

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Sensex ended 188.50 points, or 0.25%, lower at 74,482.78, while the Nifty 50 settled 38.55 points, or 0.17%, lower at 22,604.85. Investors now watch out for the US Federal Reserve meeting outcome for further clues on interest rate cuts. The Indian stock market is closed on Wednesday, May 1, on account of Maharashtra Day.

Read here: Share market holidays 2024: Is Indian stock market closed on 1st May? Nifty hit a fresh all time high on the last trading day of calendar month – April 2024 ending with MTD gains of 1.24%. A huge round of short covering was seen on index futures from the FII desk, where they cut the short position from 99,000 to less than half of 45,000 contracts. Initial targets of 22,700+ have been complete and Nifty could consolidate between 22,550 and 22,800 for this truncated week.

Any breakdown below 22,550 is likely to allow further negative views on the index. For now a range bound view is likely to play out for the week to come while broader markets are likely to steal the show on the buying front, said Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group. Also Read: April Market Review: Nifty 50 soars for 3rd straight month, gains 1.2%; metal index top performer Bank Nifty dropped close to 750 points from its intraday highs in the last hour of trade on Tuesday, negating its outperformance of this week over the Nifty.

Yesterday’s price action suggests that an underperformance of Bank Nifty over the Nifty is likely to continue for the next couple of trading sessions which is likely to drag the index lower towards 48,600 odd, Doshi said. Erosion of futures premium in the start of fresh derivative series is also suggesting some cool off on long positions for the index. Bank