Ajit Mishra of Religare Broking recommends buying these three stocks today

Market View
 

The markets continued their downward trend, losing nearly half a percent as part of the ongoing correction. Following a flat opening, Nifty experienced sharp fluctuations in both directions, ultimately closing at 24,971.30 level. Most key sectors were under pressure, mirroring the benchmark performance, with auto and IT stocks among the top losers. The broader indices, after their recent gains, also pulled back slightly, finishing marginally in the red.

The market’s upward movements are being met with resistance, primarily due to persistent selling by foreign investors and a lacklustre start to the earnings season. However, strength in select heavyweight stocks is helping to slow the decline. We maintain a negative outlook on the index, with the next critical support level at 24,700. On the stock front, opportunities are emerging on both sides, so traders should adjust their positions accordingly.

Stocks Recommendations

Deepak Nitrite Limited | LTP: Rs 2,999.50 | Buy | Target: Rs 3,230 | Stop-loss: Rs 2,870

Deepak Nitrite has broken out of a falling channel pattern after being in a corrective phase for the past two months. This breakout, supported by strong volumes, indicates accumulation by stronger market participants. Based on this price action, we anticipate the stock will resume its previous uptrend and potentially reach new highs.

DLF Limited | LTP: Rs 884.75 | Buy | Target: Rs 925 | Stop-loss: Rs 864

The real estate sector is gaining momentum, with DLF showing a notable catch-up move. The stock has formed a bullish candlestick pattern after the recent dip to the previous swing low, creating a fresh buying opportunity above its 20-week exponential moving average (WEMA). Investors can consider accumulating the stock, with a potential target of 925 in the upcoming sessions.

IndusInd Bank Limited | LTP : Rs 1,351 | Sell Futs | Target : Rs 1,290 | Stop-loss: Rs 1,380

The banking sector has shown a mixed trend, with IndusInd Bank facing pressure and forming a pattern of lower highs and lower lows. It has taken a breather around the previous swing low and indications are in the favour of resumption of the corrective bias soon. Traders can consider creating shorts in the mentioned range.

(Disclaimer: Ajit Mishra is SVP of research at Religare Broking Limited. Views expressed are his own.)