Trading guide: Nifty eyes 26,500; Axis Bank, Glenmark on analyst radar

Stocks to buy: Ajit Mishra of Religare Broking recommends buying Axis Bank, Glenmark Pharma, and United Spirits; also suggests Nifty trading strategy

Market View

Markets opened sharply higher on the first day of the new expiry and gained over a per cent, fully engulfing the recent decline. The index remained upbeat from the start, with momentum strengthening as the session progressed. As a result, the Nifty settled near the day’s high around the 26,205 mark. Market participation was broad-based, with metals, energy and IT leading the gains. Mid-cap and small-cap indices also advanced over 1 per cent, adding to the overall positive market breadth.

 

The rally was supported by a mix of domestic and global cues. Renewed optimism over a potential rate cut by the US Federal Reserve in December, along with expectations of a 25-basis-point repo rate cut by the Reserve Bank of India early next month, improved investor sentiment. Additionally, easing crude oil prices—driven by hopes of progress toward peace between Ukraine and Russia—provided further support.  CATCH STOCK MARKET UPDATES TODAY LIVE 

From a technical standpoint, the Nifty has completely retraced the past three days of declines and is again approaching its record high. The rebound from the crucial 20-DEMA reinforces the prevailing uptrend. We maintain our positive outlook and recommend continuing a “buy-on-dips” approach unless the index decisively breaks below 25,800. On the upside, we now expect the 26,300–26,500 zone to act as the next resistance. With all key sectors contributing to the move, we advise focusing on the stock selection with favourable risk–reward setups, while maintaining a preference for large-cap and large mid-cap names.

Stocks to Buy - Recommendations

Axis Bank | LTP: ₹1,290.20| Recommendation: Buy | Target: ₹1,380| Stop-loss: ₹1,240

Aligned with the broader strength in the banking space, Axis Bank is also exhibiting a bullish setup after a consolidation phase, having taken support near a previous swing high—signalling a constructive near-term outlook. The stock continues to trade well above key moving averages, indicating improving momentum and steady buying interest. The formation of higher highs and higher lows, along with supportive volumes, points to ongoing accumulation. We anticipate the stock gradually moving toward its record high in the coming sessions.

Glenmark Pharmaceuticals | LTP: ₹1,921.30| Recommendation: Buy | Target: ₹2,050| Stop-loss: ₹1,850

After retracing from its all-time high, the Glenmark Pharmaceuticals stock stabilised at a key support cluster comprising the previous resistance neckline, the 50 per cent Fibonacci retracement, and the 200-EMA. This confluence helped halt the decline and facilitated a strong base formation, with the stock trading in a narrow range—absorbing supply and indicating accumulation for potential trend resumption. The current price setup suggests a likely recovery and continuation of the broader uptrend. With limited downside and a favourable risk–reward structure, traders may consider accumulating the stock.

United Spirits | LTP: ₹1,459.50| Recommendation: Buy | Target: ₹1,560| Stop-loss: ₹1,400

The United Spirits stock has witnessed a healthy recovery following a prolonged corrective phase. After forming a base near a key support zone and reclaiming major moving averages, it is now trading firmly above the consolidation breakout and the 20-DEMA. The recent price-volume pattern indicates potential for further upside, with the stock likely to head toward 1560 in the near term. Traders may consider participating in the ongoing momentum for favourable gains.  (Disclaimer: Ajit Mishra is senior vice president of research at Religare Broking. Views expressed are his own.)