Lupin, Hindalco: 3 stocks to buy today by Ajit Mishra of Religare Broking

Nifty 50 Today: The Nifty index may continue to consolidate after its recent surge, but the broader trend remains positive

Stock Markets Today  

Markets took a pause after the recent rally and ended slightly lower on Wednesday. Following an initial uptick, Nifty remained range-bound throughout the session and ultimately settled at 23,686.65.  

The key highlight of the session, yesterday, was the strong participation from broader indices, which posted gains ranging from 0.7 per cent to 1.85 per cent. 

Going forward, the Nifty index may continue to consolidate after its recent surge, but the broader trend remains positive unless there is a decisive close below the 23,400 level. With all key sectors contributing to the rally on a rotational basis, traders should focus on stock selection and prioritise accumulating fundamentally strong stocks during dips. 

Stocks to Buy Today, Feb 6: 

Lupin Limited | LTP: Rs 2,180 | Buy | Target: Rs 2,350 | Stop-loss: Rs 2,100

Lupin share price has been trading within a broad consolidation range for the past five months, maintaining strong support above its key moving average, the 200 DEMA. After a swift rebound from the lower end of this range, Lupin stock is poised to gradually move toward the upper boundary. Given this setup, we recommend initiating fresh long positions at the specified levels. 

Hindalco Industries Limited | LTP: Rs 600.90 | Buy | Target: Rs 638 | Stop-loss: Rs 580

Amid the broader market correction, metal stocks like Hindalco also experienced a decline from higher levels. However, Hindalco share price is now showing signs of stabilisation, with a divergence between price and the RSI momentum indicator signaling a potential trend reversal. Additionally, it has reclaimed its short-term moving average, further strengthening the positive outlook. 

GAIL (India) Limited | LTP: Rs 179.70 | Buy | Target: Re 192 | Stop-loss: Rs 174

Most stocks in the energy sector have undergone a sharp correction during the recent decline and are currently trading in oversold territory. However, signs of a reversal are emerging in select stocks, with GAIL being one of them. After a month-long consolidation, GAIL share price has formed a reversal pattern and appears poised for a breakout. Traders may consider initiating long positions at the specified levels.

   

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