Trading guide: Nifty eyes 26,000; CDSL, Lupin, Nestle on analyst radar

Ajit Mishra, SVP-Research at Religare Broking, has recommended buying CDSL, Nestle India, and Lupin stocks today. Check key rationales here

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Market View

Markets extended their uptrend on Wednesday, with the Nifty 50 closing at 25,875.80, up 0.47 per cent. The index opened firm and maintained its upward momentum throughout the session, supported by strong buying in heavyweight counters across sectors. Sectorally, IT, auto, and pharma outperformed, while realty and metal ended on a muted note. The overall market breadth remained positive, aided by gains of nearly a percent each in the midcap and smallcap indices, reflecting improving risk appetite among participants.

 

The rally was fueled by optimism over improving trade dialogue prospects between India and the US, coupled with encouraging Q2 earnings from key corporates that further lifted investor sentiment. On the technical front, the Nifty has successfully reclaimed the 25,800 resistance level, with the next target seen around the 26,000–26,100 zone. While some consolidation may emerge on Thursday owing to the weekly expiry, the overall tone is expected to stay positive. Beyond the key performing sectors such as metal, banking, and auto, renewed interest is also visible in IT, pharma, and energy. Participants are advised to focus on selective stock opportunities in line with the ongoing rotational sectoral trend, preferring large-cap and large mid-cap names for long positions.

Stocks to Buy - Recommendations By Ajit Mishra, Religare Broking

Central Depository Services (India) Limited | LTP: ₹ 1,655.30| Recommendation: Buy | Target: ₹ 1,770|

Stop-loss: ₹ 1,590

Capital market stocks are witnessing renewed traction, and CDSL share stands out with a fresh breakout on the charts. The stock has broken out of a broad consolidation phase, supported by a notable rise in volumes. Additionally, prices are trading well above the moving average ribbon, reinforcing a positive undertone and offering near-term support on any dips. The strong price–volume alignment and sectoral strength indicate that momentum is likely to sustain, paving the way for further upside.

 

Lupin Limited | LTP: ₹ 2,033.90| Recommendation: Buy | Target: ₹ 2,170| Stop-loss: ₹1,960

The pharma index is witnessing base formation, and Lupin stock is moving largely in sync with this trend. The stock has established a strong base while holding firmly above the 20-, 100-, and 200-DEMA support zones on the daily chart. A noticeable surge in volumes around current levels indicates active accumulation. The emerging pattern of higher lows reflects effective downside absorption and strengthening upward momentum. Traders may consider long positions near current levels to align with the prevailing bullish structure and capitalize on the developing positive trend.

Nestle India Limited | LTP: ₹ 1,278.20| Recommendation: Buy | Target: ₹ 1,350| Stop-loss: ₹ 1,240

The Nestle India stock exhibits a robust bullish structure, rebounding decisively from its recent consolidation phase. The rising short-term average continues to provide dependable pullback support, while the broader averages are turning upward, signaling renewed momentum. A developing flag pattern, accompanied by consistent higher lows and improving volumes, reflects sustained accumulation. Traders may consider long opportunities near current levels, citing potential outperformance within the FMCG pack. 

 

(Disclaimer: This article is by Ajit Mishra, SVP-research, Religare Broking. Views expressed are his own.)