Nifty: CMP: 24,297.50
Markets experienced a breather after the recent decline, gaining over a percent, driven by strong global cues. After an initial gap-up start, the Nifty oscillated within a range and finally settled near the day’s high at 24,297.50. Most sectors contributed to the upward movement, with metals, energy, and pharma being the top performers. The broader indices also saw a notable rebound, gaining between 2.5 per cent and 3 per cent.
Although volatility has significantly cooled-off after the sharp surge, there remains potential for further decline. On the index front, a decisive close above 24,500 in the Nifty is needed to ease pressure and trigger a sustained rebound. Given the current conditions, we maintain a cautious outlook and recommend continuing with a hedged approach.
Stocks Recommendations
Sun Pharmaceutical Industries Limited | LTP: Rs 1,734.45 | Buy | Target: Rs 1,830 | Stop-loss: Rs 1,680
We have been seeing noticeable resilience in the defensive pack viz. pharma and FMCG and Sunpharma is trading in tandem with the trend. It has formed a fresh buying pivot while holding above the support zone of short term moving average i.e. 20 DEMA and looks set for the next leg of the up move.
Balrampur Chini Mills Limited | LTP: Rs 492.15 | Buy | Target: Rs 540 | Stop-loss: Rs 470
Within the sugar basket, Balrampur Chini has been outperforming and inching gradually towards its record high. It has witnessed a fresh breakout from the trendline resistance, indicating the prevailing tone to continue.
Cipla Limited | LTP: Rs 1,553.35 | Buy | Target: Rs 1,640 | Stop-loss: Rs 1,500
We are observing significant strength in the pharma sector, with CIPLA making a notable catch-up move. The stock has rebounded strongly after retesting its previous breakout zone and is holding above the confluence of important moving averages.
(Ajit Mishra is SVP of research at Religare Broking. Views expressed are his own.)
First Published: Aug 08 2024 | 6:13 AM IST
