Will Nifty scale new highs soon? Analyst decodes with three stock picks

Stocks to buy: Ajit Mishra of Religare Broking recommends buying Bank of Baroda, Coforge, and Sun Pharma; also suggests Nifty trading strategy

Market View

Markets edged higher on Wednesday, with the Nifty 50 rising 0.55 per cent to close at 26,052.65, reversing the previous session’s weakness. The index opened on a positive note and maintained its upward bias through the day, allowing the benchmark to finish near the day’s high. 

 

Sectoral performance was mixed: IT and banking stocks outperformed, while realty, energy, and metal counters lagged. In the broader market, the tone remained subdued, with the midcap index ending flat and the smallcap index slipping nearly half a per cent.

 

The rebound was supported primarily by unexpected strength in IT majors after Infosys announced its ₹18,000-crore share buyback effective November 20, lifting sentiment across the sector. Continued resilience in the banking space also contributed meaningfully to the day’s gains.

 

While the banking pack continues to lead, the IT sector, after nearly a year of consolidation, is now showing early signs of a structural reversal. We maintain a positive outlook amid the ongoing consolidation phase and expect the Nifty to attempt fresh highs on a decisive breakout above 26,100. Participants should continue to adopt a selective approach, focusing on sectors displaying strength, with a preference for large-cap and stronger mid-cap names.  READ STOCK MARKET UPDATES TODAY LIVE

Top Stocks to Buy Today - Recommendations by Ajit Mishra, Religare Broking

Bank of Baroda | LTP: ₹293.30| Recommendation: Buy | Target: ₹310| Stop-loss: ₹284

The PSU banking space continues to display strength, and Bank of Baroda is moving in line with this trend. The stock shows strong bullish momentum, forming a sequence of higher highs and higher lows, supported by healthy volumes. It is trading comfortably above key short- and medium-term moving averages (20, 50, and 100 DEMA), reinforcing trend stability. 

 

A breakout from the buying pivot further highlights renewed participation. Traders may consider accumulating positions within the suggested range to capitalise on the ongoing strength.

Coforge | LTP: ₹1,858.20| Recommendation: Buy | Target: ₹2,040| Stop-loss: ₹1,770

After an extended multi-month consolidation, the stock is now approaching a breakout. It has formed a buying pivot while staying firmly above short-term moving averages, supported by robust volumes. With the IT index showing signs of stabilising, traction may continue in outperformers like Coforge. The constructive price–volume setup suggests room for an upward move from current levels. Traders can consider initiating long positions within the recommended range.

Sun Pharmaceutical Industries | LTP: ₹1,784.10| Recommendation: Buy | Target: ₹1910| Stop-loss: ₹1,720

The pharma index is forming a base, and Sun Pharma is moving in alignment with this broader structure. The stock has broken out of a descending triangle pattern formed during last year’s corrective phase, signalling the beginning of a fresh upward leg. It has built a solid base above its weekly moving averages, while higher lows reflect effective downside absorption and improving momentum. Traders may consider long positions near current levels to participate in the strengthening bullish trend.

 

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