Ajit Mishra of Religare Broking suggests buying these two stocks on Feb 20

Market View

 

Markets remained volatile and ended nearly unchanged, extending the prevailing consolidation phase. After an initial dip, Nifty staged a swift recovery in the early hours but struggled to sustain gains due to a lack of follow-up buying and pressure on select heavyweight stocks. It remained range-bound for the rest of the session, eventually closing at 22,932.

 

Sectoral trends were mixed, keeping traders engaged—realty, metal, and energy outperformed, while IT and pharma lagged. The highlight of the session was the rebound in broader indices, which gained between 1.5 per cent and 2.3 per cent. 

 

The ongoing indecisiveness in the index is keeping participants on edge, and this volatility may persist on Thursday. We maintain our view of adopting a stock-specific approach, focusing on resilient sectors and themes, particularly those holding strong even during market downturns, and accumulating them gradually. Additionally, traders should avoid reading too much into the single-day rebound in midcap and smallcap stocks and wait for a clearer recovery signal before taking fresh positions.

 

Stocks Recommendations

 

Cholamandalam Investment | LTP: Rs 1375.40 | Buy | Target: Rs 1460 | Stop-loss: Rs 1330

 

Cholamandalam Investment has shown strong performance in the financial sector, stabilizing around its 100-week EMA. The stock is maintaining strength near the neckline of its consolidation range, supported by multiple moving averages. Price action suggests a steady upward trajectory toward its all-time high. With a buying pivot in place, it offers a fresh opportunity for accumulation at current levels.

 

UPL Limited | LTP: Rs 650.05 | Buy | Target: Rs 715| Stop-loss: Rs 608

 

UPL is entering a new upward trajectory, emerging as a top performer in the chemical sector in recent months. The stock has completed its corrective phase, forming a strong base with a reversal pattern. Price and volume dynamics remain healthy, with above-average volumes on up days and lower volumes on down days, reinforcing trend strength. Currently positioned near the breakout zone's neckline, the stock presents an opportunity for accumulation, with the potential for a sustained rally toward its all- time high.

 

Hindustan Unilever Limited | LTP: Rs 2253 | Sell Fut | Target : Rs 2150 | Stop-loss : Rs 2300 

The FMCG sector remains weak, and HUL is moving in line with this trend. Following a false breakout, the stock has re-entered its corrective phase, breaking below its broader consolidation range and key moving averages. This signals a continuation of the downtrend, with further downside potential. Traders may consider shorting HUL futures at current levels.

 

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