Power Grid, HDFC Bank among top bets by Ajit Mishra of Religare Broking

HDFC Bank stock has confirmed a breakout from a descending trendline, signaling the end of its corrective phase and the start of a fresh upward move

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Market View 

Markets extended their recovery, ending slightly higher, building on Tuesday’s surge. After a flat start, Nifty gradually moved up throughout the session, though profit booking in the final hour trimmed some gains. As a result, Nifty closed at 22,907.60, up 0.3%. Sectoral trends remained mixed, with realty and energy leading the gains, while IT and FMCG lagged. Meanwhile, strong performance from broader indices further lifted sentiment.

 

Following the recent surge, markets will react to the US Fed meeting outcome in early Thursday trades, with attention then shifting to the weekly expiry. While some consolidation is possible, the overall sentiment is likely to remain positive, favouring a 'buy on dips' approach. We are witnessing rotational participation across key sectors, with banking, financials, metals, and energy taking the lead. Traders should position themselves accordingly and remain selective in the broader market.

 

Stocks Recommendations

  HDFC Bank Limited | LTP: 1744.10 | Buy | Target: 1820 | Stop-loss: 1705 

HDFC Bank has established a strong base at the confluence of its key moving averages. Additionally, it has confirmed a breakout from a descending trendline, signaling the end of its corrective phase and the start of a fresh upward move. Given its strong chart structure, the stock appears poised to reclaim new highs soon. Traders may consider accumulating the stock within the suggested range. 

Power Grid Corporation of India Limited | LTP: 277.20 | Buy | Target: 293 | Stop-loss: 269

  Power-related stocks are witnessing decent traction, and in line with this trend, Powergrid presents a fresh buying opportunity. The stock has broken out of a week-long consolidation phase, forming a small base. In doing so, it has reclaimed its 100-week EMA, strengthening the positive outlook. Based on these technical indicators, participants can consider going long within the specified range. 

Chambal Fertilisers & Chemicals Limited | LTP: 586.95| Buy | Target: 645 | Stop-loss: 558 

Chambal Fertilisers recently broke out of an 8-month consolidation phase, reaching a new high. Following the breakout, the stock consolidated in a tight range near its breakout zone, establishing a fresh buying pivot. With a strong surge in volumes, it is now resuming its uptrend. Traders can consider taking long positions within the specified range.

 

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