Top Stock Picks: Sachin Gupta of 5paisa Recommends Prestige Estates and Federal Bank - April 22, 2025

Indian Stock Market Update: A Positive Climb

In a notable move, Indian stock markets displayed a steady upward trend on Tuesday, buoyed by fresh inflows from Foreign Portfolio Investors (FPIs) and positive sentiments following a significant meeting between Prime Minister Narendra Modi and US Vice President JD Vance. Analysts are viewing this high-profile dialogue as a crucial advancement for economic and trade relations between India and the United States. The Nifty 50 index opened at 24,185.40, up by 59.85 points or 0.25%, while the Sensex kicked off at 79,728.39, an increase of 319.89 points or 0.40%.

Market Resilience Amid Global Weakness

Experts have highlighted that Indian equities are demonstrating remarkable resilience, outperforming other markets despite global uncertainties. This strength is attributed to solid domestic fundamentals and renewed optimism surrounding Indo-US relations.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, emphasized that typically, the US market’s performance heavily influences other international markets. However, the current scenario deviates from this norm. Recent turmoil in the US market, stemming from potential conflicts between President Trump and Federal Reserve Chair Jerome Powell, adds to investor anxiety.
Powell has indicated that future decisions will be driven by the latest economic data, which currently reflects a challenging outlook for the US economy. His recent discussions with Raghuram Rajan dismissed the notion of a "Fed Put," suggesting ongoing tensions could lead to unpredictable actions from the President.

Nifty 50 Performance and Technical Insights

The Nifty 50 continued its upward trajectory for the fifth consecutive session, surging by 1.1% and closing above the 24,000 mark. This rally has been propelled by broad-based participation, particularly in the financial sector, with major banks like ICICI Bank and HDFC Bank posting better-than-expected earnings and achieving 52-week highs.

The Nifty 50 has seen a 7.5% uptick from its recent lows, indicating strong market momentum.
Technically, the index has broken out of a falling channel and is holding above the 200-day moving average (DMA), suggesting bullish strength over the long term.
The Relative Strength Index (RSI) shows a positive crossover but remains at elevated levels, hinting at potential profit-taking or corrections.

Support and Resistance Levels

Support levels are identified at 24,000 and 23,700.
Resistance levels are set at 24,400 and 24,700.

Stock Recommendations for Today

For investors looking to capitalize on the current market conditions, Sachin Gupta, a Senior Research Analyst at 5paisa, has highlighted two stocks to consider.

Prestige Estates Projects Ltd: Recently rebounding from a low of 1048, the stock has shown bullish momentum on the weekly chart. It has also surpassed the 100-week Exponential Moving Average, indicating medium-term strength. Investors are advised to buy shares around ₹1,265, targeting ₹1,330 and ₹1,370, with a stop-loss set below ₹1,200.
Federal Bank Ltd: After finding support at the 200-DMA around the 186 level, this stock has confirmed a breakout from a Bullish Flag Pattern and is showing signs of an ongoing uptrend. Traders can look to buy Federal Bank shares around ₹200, with a target of ₹215 and a stop-loss below ₹192.