Rajesh Palviya of Axis Sec Suggests Hindalco Industries, Cummins India, Adani Power Shares to Buy on April 10

Why It Matters

The picks signal short‑term upside for investors as the Indian market rebounds, while the financial sector’s recovery hints at steadier capital inflows after March outflows. Strong technical setups in Hindalco, Cummins and Adani Power could amplify gains if broader market sentiment stays positive.

Key Takeaways

• Nifty 50 rose 0.72% to 23,945, Sensex up 0.70% to 77,189.
• Financials gained 1.6% daily, 8.2% weekly, ending six‑week decline.
• Hindalco broke ₹976 resistance, target ₹1,010‑1,030 (~$12‑$12.4).
• Cummins India cleared ₹4,770 channel, target ₹5,000‑5,350 (~$60‑$64).
• Adani Power breached ₹172.5, target ₹183‑190 (~$2.2‑$2.3).

Pulse Analysis

India’s equity market entered April on a positive note, driven largely by a resurgence in the financial sector. After a six‑week slump fueled by unprecedented foreign outflows in March, banks and NBFCs posted a 1.6% daily gain and an 8.2% weekly rise, lifting the broader Nifty 50 and Sensex. This rebound aligns with a tentative cease‑fire in the Middle East and a modest improvement in global risk sentiment, providing a more supportive backdrop for domestic equities.

Technical analysts at Axis Securities zeroed in on three mid‑cap leaders that have cleared pivotal resistance levels. Hindalco Industries, trading around ₹986 ($12), broke an 8‑9‑week ceiling at ₹976 and now targets ₹1,010‑1,030 ($12‑$12.4). Cummins India, priced near ₹4,907 ($60), surged above the upper band of its falling channel at ₹4,770, with upside projected to ₹5,000‑5,350 ($60‑$64). Meanwhile, Adani Power, hovering at ₹172 ($2.1), pierced a horizontal barrier at ₹172.5 and aims for ₹183‑190 ($2.2‑$2.3). All three stocks sit comfortably above their 20‑, 50‑, 100‑ and 200‑day moving averages, and momentum indicators such as RSI remain in bullish territory, reinforcing the technical case for accumulation.

For investors, these signals suggest a window of opportunity to capture incremental gains as the market consolidates its recovery. However, the upside is contingent on sustained financial sector strength and the absence of geopolitical shocks that could reignite capital outflows. Portfolio managers may consider allocating a modest portion to these equities, balancing the attractive risk‑reward profile against broader macro uncertainties. Monitoring support levels—₹950‑₹930 for Hindalco, ₹4,750‑₹4,650 for Cummins, and ₹166‑₹160 for Adani Power—will be crucial for managing downside risk.