Ajit Mishra decodes Nifty strategy; recommends 'Buy' on HAL, 2 more stocks

Stocks ideas by Ajit Mishra: The analyst from Religare Broking is bullish on Hindustan Aeronautics, Bharat Forge and Union Bank of India.

Nifty Outlook

  The markets extended their winning streak for the fourth consecutive session on Wednesday, supported by favourable global cues and sustained buying across sectors. After a positive start, the Nifty traded within a narrow range for most of the session, although the overall bias remained positive. The index eventually crossed the psychological 24,000 mark and settled at 24,085.40, up 0.40 per cent.  Sectoral participation remained broadly positive, with metals, energy, and IT leading the gains, while auto and realty stocks witnessed some profit booking following their recent outperformance. Broader markets also participated in the upmove, with midcap and smallcap indices advancing in the range of 0.52 per cent–0.80 per cent, indicating improving market breadth and sustained participation beyond frontline stocks.  The continued easing in crude oil prices and expectations of a status quo from the US Federal Reserve in its upcoming policy meeting supported overall risk sentiment. However, market participants remain watchful of the Fed's commentary on the future interest rate trajectory, which could influence global market trends and capital flows.  Technically, the Nifty has reclaimed the psychological 24,000 mark, reinforcing the ongoing recovery, and is now approaching the 100-day EMA near the 24,150 level. A sustained move above this zone could pave the way for an extension towards the 24,500 mark in the near term.  On the downside, the 23,800–23,900 region is expected to provide immediate support in the event of any profit-taking, followed by the 23,650 level as the next key support.  As participation broadens across sectors, we continue to favour a stock-specific approach, focusing on relative outperformers while maintaining disciplined risk management and booking profits on rallies due to anticipated event-specific volatility. 

Stock recommendations by Ajit Mishra, SVP - Research, Religare Broking.

  Bharat Forge  LTP: ₹2,034.50  Recommendation: Buy  Target: ₹2,175  Stop-loss: ₹1,955  BHARATFORG continues to exhibit a robust bullish trend, supported by a well-defined sequence of higher highs and higher lows. The stock is trading comfortably above its key moving averages, reflecting sustained positive momentum and continued institutional participation.  Recent price action confirms a breakout above the prior swing high following a phase of consolidation, accompanied by improving volumes. Investors may consider initiating fresh positions within the recommended range.  Hindustan Aeronautics (HAL)  LTP: ₹4,460.50  Recommendation: Buy  Target: ₹4,760  Stop-loss: ₹4,290  Defence and defence-related stocks witnessed strong momentum today after remaining subdued for an extended period. In line with the sector's strength, HAL has also staged a notable rebound. After finding support near its 200-week EMA in March 2026 and rallying towards the ₹4,800 mark, the stock entered a phase of corrective consolidation.  However, HAL now appears to be resuming its upward trajectory, having formed a small base around a cluster of key daily moving averages before breaking out with improving volumes.  We expect the positive momentum in both the defence sector and HAL to continue in the near term. Therefore, traders may consider initiating long positions within the prescribed range.  Union Bank of India  LTP: ₹173.75  Recommendation: Buy  Target: ₹185  Stop-loss: ₹167  UNIONBANK is displaying a constructive bullish setup following an extended consolidation phase, characterised by a sequence of higher lows and improving buying participation.  The stock has recently moved above its key short-term moving averages, supported by rising volume activity, indicating strengthening momentum and the emergence of a bullish trend.  As long as it sustains above its immediate support zone, the overall technical outlook remains positive. Investors may consider gradual accumulation to benefit from the potential upside.  (Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own. Click for analyst disclaimer.)