Nifty to rise for 7th day? Positive bias seen; analyst picks 3 'Buy' stocks

Bajaj Finance, Coal India and Hindustan Aeronautics are the buy recommendations given by Ajit Mishra of Religare Broking

Stock market preview

Markets extended their positive streak on Wednesday, gaining nearly half a per cent. After a gap-up start, the Nifty index moved within a narrow range during the first half, but volatility in the latter part of the session trimmed some gains, and it finally settled at the 24,973 level. Sector-wise, Nifty IT continued its recovery with gains of over 2.5 per cent, followed by strength in realty, financials, and energy. In contrast, the auto sector witnessed profit booking after several sessions of outperformance, shedding over a per cent. 

 

Market breadth remained positive, reinforcing the bullish undertone across both frontline and broader markets, with the midcap and smallcap indices advancing in the range of 0.75 per cent to 1 per cent. 

 

The uptrend was supported by renewed optimism over progress in India-US trade negotiations, alongside positive foreign flows in the cash market after a period of continuous decline, which further lifted sentiment.

 

Markets are gradually inching higher amid favourable cues; however, sustained participation from the two key sectors--IT and banking--will be essential for the Nifty to move towards the 25,250-25,400 zone. On the downside, support has shifted to the 24,650-24,750 range. We maintain a positive bias and suggest using intermediate dips or consolidation phases to accumulate fundamentally strong counters across the board.

3 Stocks to Buy - Recommendations by Ajit Mishra, Religare Broking

Bajaj Finance Ltd. (LTP: ₹967.95) | Recommendation: Buy | Target: ₹1,040 | Stop-loss: ₹930

Bajaj Finance stock has registered a strong rebound from its long-term breakout zone, effectively concluding a prolonged consolidation phase. The recovery has shaped into a U-curve formation, reflecting sustained buying interest after recent corrective moves. The overall structure remains decisively bullish, supported by price action nearing record highs. 

 

On the technical front, the stock is trading above all key moving averages, with the 20-DMA crossing above the 50-DMA, while both remain comfortably above the 200-DMA -- underscoring trend strength. With momentum firmly aligned on the upside, accumulation at current levels presents an attractive opportunity for traders.

Coal India Ltd. (LTP: ₹391.90) | Recommendation: Buy | Target: ₹412 | Stop-loss: ₹378

Coal India has confirmed a breakout from a declining trendline, establishing a constructive setup following its consolidation phase. The stock price is sustaining above the 21, 50, and 100-DEMA, reflecting strengthening short-to-medium term momentum. Rising volumes accompanying the breakout further validate fresh accumulation and renewed buying interest. This technical configuration suggests continuation of the upward bias, offering investors a favourable entry point to ride the emerging trend.

Hindustan Aeronautics Ltd. (LTP: ₹4557.50) | Recommendation: Buy | Target: ₹4880 | Stop-loss: ₹4400

Defence sector stocks are showing early signs of bottoming out after spending nearly 5 months in a corrective phase. Among the top performers, HAL stock stands out with a strong recovery from its 200-day EMA support. It has reclaimed short-term moving averages too, with a noticeable surge in volumes, further adding to the confirmation. In short, the price action is now aligned with the sectoral trend, pointing to a potential short-term upswing. Participants can consider initiating fresh longs as per the mentioned levels. 

 

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