Nifty: CMP: 25,198.70
The markets ended their gaining streak, losing nearly half a percent due to weak global cues. In line with other Asian markets, the Nifty index opened with a gap down, following a decline in US markets. However, selective buying in heavyweight stocks helped trim the losses as the session progressed, with the index eventually closing at 25,198, down by 0.3 per cent. Sector-wise, the trend was mixed; pharma, realty, and FMCG sectors saw gains, while IT and metal sectors faced profit-taking.
This move indicates that the bulls are still holding their ground, though consolidation could occur if global pressures intensify. We recommend maintaining a focus on stock selection and trade management, with the support zone for Nifty remaining strong at 24,850-25,000.
Stocks Recommendations
Biocon Limited | LTP: Rs379.40| Buy |Target: 400 | Stop-loss: Rs 368
The pharma sector is showing notable resilience, with BIOCON taking the lead. The stock has broken out from a bullish rectangle pattern, accompanied by a strong surge in volumes. This chart pattern, along with the increased trading activity, suggests that the stock is poised to attract fresh upward momentum.
Chambal Fertilizers & Chemicals Limited | LTP: Rs 531.25 | Buy |Target: Rs 585 | Stop-loss: Rs 510
There is growing momentum in the fertilizer sector, with CHAMBLFERT showing signs of a catch-up move. The stock has formed a new buying pivot near the neckline of its previous breakout zone, while staying solidly above the short-term moving average support on the weekly chart.
The chart pattern suggests a potential breakout is on the horizon, making it a good opportunity to initiate fresh longs.
Power Finance Corporation Limited | LTP: Rs 555.30 | Buy |Target: Rs 595 |Stop-loss: Rs 540
The stock recently broke out from its downward resistance trend line, accompanied by a significant increase in volume. Continued buying interest is evident as the stock rebounded from its short-term moving average, the 20 EMA.
The price action, supported by strong volumes, indicates that the bullish momentum is likely to persist.
(Disclaimer: Ajit Mishra is a SVP of research at Religare Broking. Views expressed are his own.)
First Published: Sep 05 2024 | 6:28 AM IST
