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

Ajit Mishra, SVP - research, Religare Broking has recommned buying the shares of Marico, Hindustan Aeronautics, JSW Energy today

Market View

 

Markets remained under pressure on Wednesday and ended lower amid weak global cues and persistent geopolitical concerns. After a subdued start, the Nifty traded with a negative bias throughout the session. Although buying in select heavyweights helped cap the pace of the decline in the latter half, the index eventually settled near the day's low at 23,996.25, down around 0.79 per cent.

 

Sectoral participation remained largely negative, with realty and IT emerging as the biggest laggards, followed by weakness in financials and pharma. Select FMCG and auto stocks stood out as the key outperformers after encouraging quarterly earnings from some companies. Broader markets also remained under pressure, with both the midcap and small-cap indices ending in the red, reflecting a cautious undertone across the market.

 

 

Investor sentiment remained subdued as continued tensions in the Middle East pushed Brent crude prices above $95 per barrel. Adding to the pressure, the proposed phased US tariffs on imported generic medicines triggered selling in pharma stocks, while weakness in the rupee further weighed on sentiment. However, strong quarterly earnings from select auto companies helped cushion the decline in the broader market.

 

Technically, the Nifty has slipped back below the immediate support level of 24,000, and the close indicates the possibility of a retest of the 23,650–23,800 zone. Meanwhile, the 24,150–24,300 region is expected to act as a stiff hurdle on any rebound. Despite the weakness in the benchmark index, rotational buying across sectors continues to offer stock-specific trading opportunities. We therefore recommend maintaining a cautious stance, focusing on relatively stronger stocks while adhering to disciplined risk and position management.

 

Stock Recommendations

Marico Limited

 

LTP: ₹862.65 | Recommendation: Buy | Target: ₹925 | Stop-loss: ₹830

 

Marico exhibits a steady uptrend, characterized by a higher high and higher low structure while trading within a rising channel. The stock has formed a buying pivot after consolidating above its 20-day EMA, indicating renewed buying interest. Its sustained position above key moving averages and the constructive price structure suggest a continuation of the prevailing uptrend. Considering the favourable risk-reward setup, one can go long on the stock within the mentioned range.

 

Hindustan Aeronautics Limited

 

LTP: ₹4,574.8 | Recommendation: Buy | Target: ₹4,900 | Stop-loss: ₹4,400

 

The stock continues to display a strengthening technical structure after successfully defending a critical support zone and sustaining above its medium- and long-term moving averages. Price action has confirmed a breakout above a declining trendline, accompanied by consistent higher highs and higher lows, reinforcing bullish momentum. Rising volumes during advances indicate sustained institutional accumulation, validating the prevailing uptrend. Investors may consider accumulating the stock within the recommended buying range.

 

JSW Energy Limited

 

LTP: ₹561.7 | Recommendation: Buy | Target: ₹603 | Stop-loss: ₹540

 

The stock continues to exhibit a robust bullish structure, supported by an ascending trendline and sustained trading above key moving averages, reflecting strong underlying demand. Recent price action signals renewed buying interest following a healthy corrective phase, reinforcing positive momentum. The stock remains within a rising price channel, where declines continue to attract accumulation near the lower band, indicating sustained buying conviction. Investors may consider accumulating the stock within the recommended buying range.  =============================== 

(Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own. Click for analyst disclaimer.)