Analyst shares Nifty strategy; recommends Apollo Hospitals, Federal Bank

Stocks to buy today: Ajit Mishra of Religare Broking has recommended buying three stocks today - Apollo Hospitals, Federal Bank, and Varun Beverages.

Nifty strategy by Ajit Mishra of Religare Broking  Markets remained volatile on Wednesday and ended lower, extending the prevailing weak trend amid adverse global cues and persistent macroeconomic concerns. After a gap-down start, the Nifty drifted further lower during the first half and tested the crucial 23,150 zone—the gap area on the daily chart—before witnessing a sharp rebound as the session progressed. Eventually, the index settled at 23,405.60, down 0.33 per cent.  Sectoral trends remained mixed, with IT emerging as the biggest drag following its recent sharp rebound, followed by weakness in realty and FMCG stocks. On the other hand, a recovery in banking and financial counters played a critical role in limiting the losses. Broader markets also traded in a choppy manner and ended flat to marginally lower, reflecting a cautious undertone across the market.  The weakness was primarily driven by renewed geopolitical tensions in the Middle East following fresh hostilities involving Iran, which pushed Brent crude prices higher. Simultaneously, the rupee weakened to a one-week low amid rising oil prices, a sharp reversal in IT majors, and continued foreign institutional outflows further weighed on sentiment.  Technically, the Nifty has finally filled the gap on the daily chart around the 23,150 mark and witnessed a swift rebound thereafter. The sharp and divergent moves in the two key sectors—banking and IT—are keeping market participants uncertain about the next directional move, while other sectors continue to offer stock-specific trading opportunities on both sides. On the upside, the 23,550–23,700 zone is likely to act as an immediate resistance band, whereas a decisive break below 23,150 could trigger the next leg of the decline. Given the prevailing uncertainty, we continue to maintain a cautious stance and recommend a stock-specific approach with strict risk management. 

 

Stocks to buy today

Apollo Hospitals Enterprise: LTP ₹8,290.50  Recommendation: Buy  Target: ₹8,900  Stop loss: ₹7,980  Apollo Hospitals remains firmly positioned within a well-established long-term uptrend, reflecting sustained buying interest and strong relative strength across broader market phases. Supported by a consistent higher high–higher low price structure and positively aligned rising moving averages, the stock continues to exhibit favorable technical characteristics.  The Federal Bank Limited: LTP ₹301.05

  Recommendation: Buy  Target: ₹322  Stop loss: ₹289  Federal Bank is displaying notable strength after emerging from a consolidation phase, with price action indicating the potential for the next leg of its upward journey. The stock has continued to outperform its peers while maintaining a firm footing near its lifetime high zone.  Varun Beverages Limited: LTP ₹533.40  Recommendation: Buy  Target: ₹575  Stop loss: ₹512  Varun Beverages has witnessed a meaningful improvement in its technical structure, signaling a shift in trend following an extended corrective phase. The recent price action reflects growing bullish participation, supported by improving momentum and a strengthening medium-term outlook.

 

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Disclaimer: This article is written by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own. Readers' discretion is advised. Click here for analyst disclosures