3 stocks you shouldn't ignore; here's why they belong in your portfolio

Market View

 

Markets rebounded sharply on Wednesday, snapping an eight-session losing streak on the back of firm domestic cues. The benchmark index opened higher, supported by buying across large- cap counters, and scaled an intraday high near 24,867.95 before trimming some gains to finally settle at 24,836.30. Sectoral performance was broad-based, with financials and other rate- sensitive sectors leading the advance, followed by pharma, realty, and IT. 

 

The broader markets also participated in the recovery, as both midcap and smallcap indices gained over a percent each, underscoring improved risk appetite among investors. The rebound was fueled by the Reserve Bank of India’s Monetary Policy Committee keeping the repo rate unchanged at 5.5 per cent, in line with expectations, while signaling confidence in the

domestic economic outlook. Additional support came from easing crude oil prices and sustained strength in global equities. 

 

Stability in the rupee against the US dollar and a decline in India VIX further reflected subsiding near-term volatility, encouraging incremental risk-taking. That said, participants should avoid reading too much into a single-day rebound and wait for stability above 24,900 to confirm a sustained recovery, with immediate support now placed in the 24,600–24,700 zone. For the next session, focus will remain on rate-sensitive sectors, particularly banking, financials, and auto, while metals and energy could also offer selective buying opportunities.   READ STOCK MARKET UPDATES TODAY LIVE 

Stocks Recommendations

Bank of Baroda | LTP: ₹ 259.60 | Recommendation: Buy | Target: ₹ 277 | Stop-loss: ₹248

 

Bank of Baroda is displaying constructive price action as it consolidates near the upper band of its recent range while holding firmly above key moving averages. The recent breakout has been followed by a healthy retracement, which provides an attractive entry point at lower levels, thereby improving the risk-reward setup. Volume activity has also picked up, suggesting increased market participation and strengthening conviction in the trend. With momentum gradually building and the stock maintaining its position above critical support zones, the overall technical structure remains favourable.

 

Bharat Electronics Limited | LTP: ₹ 406.50 | Recommendation: Buy | Target: ₹ 432 | Stop-loss: ₹393

 

The defence sector continues to show resilience, with Bharat Electronics Limited (BEL) leading the pack. The stock has been in a strong uptrend, trading within a well-defined rising channel. After undergoing a two-month corrective phase, it bounced decisively from the 100 EMA, marking a clear resumption of its broader trend. Currently, BEL is consolidating its recent gains and has formed a fresh pivot above its short-term moving averages, which points to continued upward momentum. Volume trends further support this positive outlook, indicating sustained investor interest.

 

Max Financial Services Limited | LTP: ₹ 1621.90 | Recommendation: Buy | Target: ₹ 1735 | Stop-loss: ₹1560

 

Max Financial Services is exhibiting a robust uptrend, characterised by a consistent pattern of higher highs and higher lows on the daily chart. The stock recently consolidated near its short-term moving averages and has now staged a strong rebound, suggesting a revival of momentum. Notably, the RSI has given a positive crossover, further reinforcing the bullish outlook and indicating strength in the current move. With price action aligned with improving technical indicators, the stock appears well-positioned to extend its uptrend in the near term.

 

(Disclaimer: Ajit Mishra is senior vice president of research at Religare Broking. Views expressed are his own.)