Religare recommends 3 stocks to buy today; suggests Nifty trading strategy

Stocks to buy: Ajit Mishra of Religare Broking recommends buying Cholamandalam Investment, Tata Power and L&T; also suggests Nifty trading strategy

Nifty share price:

Markets rebounded sharply on Wednesday, gaining over half a percent and extending the prevailing positive momentum. After a firm start, the Nifty continued to move higher through most of the session, though mild profit-taking in the final hour trimmed some gains. Eventually, it closed at 25,323.55, up 0.71 per cent. Sector-wise, most indices ended in the green, with realty, financials, and metals leading the advance. The broader market also remained constructive, as both midcap and smallcap indices posted healthy gains, supported by strong market breadth.

 

The up move was driven by some easing in the US-China trade tussle and a rebound in the rupee from recent lows. Additionally, a stable start to the earnings season and rating agencies reaffirming their positive outlook on India helped counter lingering worries around global growth and trade tensions.

 

Nifty technical view: 

Technically, the Nifty looks poised to retest the trendline hurdle near 25,450, and a decisive breakout above this level could propel the index toward 25,650 and beyond. We maintain a bullish bias and continue to advocate a “buy on dips” approach as long as the index holds above the 25,000 support zone. Sector rotation currently favors banking, metals, and auto, while defensives like FMCG and pharma may continue to underperform in the near term so participants should align their positions accordingly.

Stocks to buy by Ajit Mishra of Religare Broking

Cholamandalam Investment and Finance Company Limited | LTP: ₹1698.4 | Recommendation: Buy | Target: ₹1,820| Stop-loss: ₹1,635

CHOLAFIN has been maintaining a robust uptrend, recently scaling fresh 52-week highs, which reinforces the prevailing bullish sentiment. The stock had been consolidating for nearly a year, forming a well-defined cup and handle pattern — a classic bullish continuation setup. The breakout from this formation signals the resumption of the primary uptrend and the start of a new upward leg. 

 

Moreover, momentum indicators are firmly aligned in favor of the bulls, suggesting sustained strength in price action. Going ahead, the stock is expected to maintain its upward trajectory, and long positions can be considered within the mentioned range for potential gains.

Larsen & Toubro Limited | LTP: ₹3,828.70| Recommendation: Buy | Target: ₹4,080| Stop-loss: ₹3,690

L&T’s chart structure continues to demonstrate a strong long-term uptrend, well supported by a steadily rising 200-week WEMA. After a prolonged multi-year rally, the stock entered a broad consolidation phase between ₹3,000 and ₹3,750, forming a constructive trend continuation pattern. The recent breakout above this range confirms renewed bullish momentum, with prices now holding comfortably above all key moving averages, which remain positively aligned. 

 

The consolidation phase has helped the stock digest earlier gains and build a solid base for the next leg higher. With this setup, L&T appears well-positioned for further upside in the near to medium term.

Tata Power Company Limited | LTP: ₹396.5 | Recommendation: Buy | Target: ₹425| Stop-loss: ₹382

Power sector stocks are witnessing renewed investor interest, and Tata Power stands out with a fresh breakout setup. After a period of tight consolidation, the stock has rebounded strongly from the support zone formed by the moving average ribbon and successfully reclaimed the upper end of its trading range. 

 

The price structure now indicates the potential for a fresh up move, supported by improving momentum and favorable sectoral sentiment. Given this technical configuration, long positions can be considered within the recommended range for a potential move toward the projected target.

 

(Disclaimer: This article is by Ajit Mishra, SVP-research, Religare Broking Limited. Views expressed are his own.)