Dharmesh Shah recommends Axis Bank and Tata Steel

Dharmesh Shah, an analyst from ICICI Direct, shared optimistic views on the stock market's recent recovery. He believes that the Nifty index could rise to 23,700, supported by favorable conditions in the banking and metal sectors. Shah noted significant improvements in the market breadth. He mentioned that the percentage of stocks above the 50-day moving average has increased, indicating a healthier market. The recent rise in the dollar index and a drop in bond yields are also positive signs for the Indian market. He highlighted Axis Bank as a top pick within the banking sector. Shah pointed out that Axis Bank, which focuses on retail and SMEs, has strong potential for growth, with a target price of 1,172 and a suggested stop loss of 974. He expects the Bank Nifty to reach around 53,000 in the coming months. Additionally, Shah recommended Tata Steel from the metal sector. He believes the company's stock could rise to about 176, with a stop loss of 147. This follows a notable breakthrough in the metal index, which has been positively influenced by reduced import duties on steel and a falling dollar index. In summary, Axis Bank and Tata Steel are the two key stock recommendations from Dharmesh Shah as he sees a positive trend in both sectors amid the market recovery.