Ajit Mishra from Religare Broking suggests buying these three stocks today

Market View

Nifty: CMP: 23,868.80

Markets edged higher as expected, gaining over half a percent. After a flat start, the Nifty gradually climbed throughout the session and closed near the day’s high at 23,868.80. 

Sectoral trends were mixed, with energy, FMCG, and banking contributing to gains, while metal, auto, and realty sectors faced pressure. The broader indices remained range-bound and closed nearly unchanged. Selective heavyweights have been driving the index gains, with Reliance making a significant impact today. 

We anticipate some volatility on Thursday due to the scheduled monthly expiry of June derivatives contracts. Despite this, we reiterate our recommendation to continue with a “buy on dips” strategy, focusing on specific sectors and themes for stock selection.

Stocks Recommendations

Apollo Tyres | LTP: Rs 517.75 | Buy | Target: Rs 590 | Stop-loss: Rs 485

Apollo Tyres has been in a steady uptrend for more than a year and a half, forming a series of higher tops and bottoms with supportive volumes. Technically, the stock has been trading in a broadening pattern and recently bounced off the lower end of the pattern. Additionally, in the previous week, it recorded a breakout from a brief consolidation and a down-sloping resistance trendline, indicating that the bullish tone is likely to continue. The stock is expected to gradually inch higher and test the upper boundary of the mentioned pattern.

Gujarat Gas | LTP: Rs 620.95 | Buy | Target: Rs 675 | Stop-loss: Rs 595
 

Recently, the stock witnessed a breakout from its two-year consolidation phase with strong volumes. However, minor profit booking caused the stock to retrace to the neckline of its breakout zone. It is now inching higher, taking support from the same level, indicating that the ongoing uptrend is likely to continue. Given the price action and volume activity, one can go long in the stock. 

HDFC Life Insurance Company | LTP: Rs 589.05 | Buy | Target: Rs 620 | Stop-loss: Rs 575

HDFC Life is showing signs of a potential trend reversal, having recorded a breakout from a trend reversal pattern. In the last session, the stock rebounded higher, taking support near the neckline of the pattern with a strong surge in volumes. Around the same juncture, it has support from its short-term moving average, the 20 EMA, indicating that momentum is in place. Traders can consider initiating fresh long positions in the stock.

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