Vinay Rajani recommends Coforge and Godrej Consumer stocks

Market expert Vinay Rajani from HDFC Securities believes the stock market is in a strong upward trend. He sees a solid support level at 23,400 points for the Nifty index. Rajani predicts that the Nifty could rise to 24,125, fueled by foreign institutional investors (FIIs) covering their short positions and moving into the FMCG and IT sectors. Rajani noted that the Nifty recently broke resistance levels linked to both 100 and 200-day moving averages. This means that 23,400 should now act as a support level, and he expects the Nifty to bounce back if there is any correction. He believes the recent rally, which saw an 8% increase, is strong enough to continue, with no sharp downward reversal expected. He sees signs of strength in the broader markets but suggests investors should focus more on large-cap stocks. Over the past years, large-cap stocks have underperformed compared to small and mid-cap stocks, but Rajani believes this trend is about to reverse. Rajani recommends specific stocks to consider. In the IT sector, he suggests investors look into buying shares of Coforge, which is trading above its 200-day average. He advises entering around 7,900 with a stop loss at 7,700 and a target of 8,200. In FMCG, he recommends Godrej Consumer, which can be bought at around 1,125, with a stop loss at 1,100 and a target of 1,160. Overall, Rajani believes sectors that have not yet taken part in the rally, like IT and FMCG, could perform well. He advises investors to be mindful of profit booking but sees strong potential in these sectors.