Nifty may take a breather; Tata Steel, Power Grid among top stocks to buy

Markets traded under pressure and ended lower, extending their recent losing streak as global and domestic headwinds weighed on sentiment. After a weak start, the Nifty recovered most of its early losses in the first half; however, renewed selling in heavyweights across sectors dragged the index closer to the day’s low, eventually settling at 25,056.90, down 0.43 per cent. The decline was broad-based, with realty, auto, and energy among the top laggards. Mid- and small-cap indices underperformed the benchmark, losing between 0.74 per cent and 1 per cent.

 

Among the key drags, the rupee hovered near its record low despite RBI intervention, while persistent concerns around US tariffs, visa reforms, and sustained FII outflows added to the pressure. On the positive side, HSBC upgraded its outlook on Indian equities to “overweight,” citing attractive valuations and improving macro fundamentals.

 

Technically, after four straight sessions of decline, the Nifty tested its first line of support at the 20 DEMA around 25040 level, weighed by continued underperformance in private banks and IT majors. Profit-taking in auto, energy, and metals further intensified the pressure. Looking ahead, a temporary breather cannot be ruled out, with immediate support placed around 24,900–25,000; however, the upside is likely to stay capped until private banks and IT show signs of recovery. We advise maintaining selective exposure, focusing on stocks demonstrating resilience through time-wise correction, while keeping position sizes moderate until clear signs of trend resumption emerge.

Stocks recommendations

Jindal Steel Limited | LTP: ₹ 1,052.65| Recommendation: Buy | Target: ₹1,125 | Stop-loss: ₹1,010

JINDALSTEEL is exhibiting relative strength after breaking out of its descending trendline. The stock has been forming a base-on-base structure, reflecting healthy accumulation. It has recently given a breakout from an elevated base, accompanied by rising volumes, indicating the start of a fresh leg of up move. Moreover, the stock is holding firm above key medium- and long-term moving averages, highlighting strong bullish momentum and sustained investor confidence. Fresh long positions can be considered at the defined levels.

 

Power Grid Corporation of India Limited | LTP: ₹ 293.30| Recommendation: Buy | Target: ₹314 | Stop-loss: ₹282

Energy counters are displaying strength amid broader market consolidation, with selective names like POWERGRID offering fresh opportunities. The stock has reclaimed its 200 EMA after a brief consolidation phase below it and has also confirmed a breakout from a declining trendline. This establishes a constructive setup following its recent corrective spell. Supported by decisive price action and favorable sectoral momentum, the recovery is expected to gather pace, making current levels attractive for initiating long positions.

TATA Consumer Products Limited | LTP: ₹ 1,140.10| Recommendation: Buy | Target: ₹ 1,220| Stop-loss: ₹1,096

The stock has staged a breakout from its five-month-long descending channel, supported by higher volumes. After a brief pause, the stock has formed a new buying pivot above the confluence of its moving average ribbon, which is now fanning out in a positive alignment. Rising volumes accompanying the breakout further validate fresh accumulation and renewed buying interest. This technical configuration suggests continuation of the upward bias with stock potentially testing record high, offering investors a favorable entry point to ride the emerging trend.

 

Disclaimer: Ajit Mishra is SVP-Research at Religare Broking. Views expressed are his own. For further disclaimer from the analyst, visit: https://religareonline.com/disclaimer)