Further consolidation ahead for Nifty? Here's today's outlook and top picks

Ajit Mishra of Religare Broking has recommended buying the shares of Coal India, Hindustan Unilever, and Lupin today

Market view

Markets traded with a negative bias on Wednesday, extending their recent corrective trend amid weak global cues and persistent geopolitical concerns. The Nifty opened gap down  and remained range bound for most part of the session and, with only brief recovery attempts during intraday trade and finally settled near the 24,480.50 mark, down around 1.55 per cent, Selling was visible across major sectors. Metal, realty and energy were among the key laggards, while IT showed relatively better resilience. Broader markets witnessed more pressure, with both midcap and smallcap indices losing over 2 per cent. 

Investor sentiment remained fragile amid weak global signals, elevated crude oil prices and lingering uncertainty around geopolitical developments. Continued foreign institutional selling and currency volatility further dampened confidence. 

 

The breakdown of the crucial support level at 24,600 in the Nifty index, coupled with a sharp rise in the India VIX (up over 50% this week so far), points toward pain ahead. Going ahead, the next major support for Nifty is at 24,050, which coincides with the support zone of 100 WEMA (Weekly Exponential Moving Average). In case of rebound, 24,600–24,800 zone is likely to act as an immediate hurdle. Given the current environment of heightened volatility and weak global cues, participants should remain cautious, keep position sizes light and focus on disciplined trade management.  READ | Chennai Petroleum, Solar Ind among top stocks to buy today; check targets

Stocks Recommendations

Coal India Limited | LTP: ₹435.15 | Recommendation: Buy | Target: ₹465 | Stop-loss: ₹418

Coal India has established a strong base above the neckline of its previous consolidation breakout and continues to hold firmly above key weekly moving averages, reinforcing the overall structural strength. A bullish candle supported by notable volumes has resulted in the formation of a fresh buying pivot. In the current broader market corrective phase, where leadership is limited, COALINDIA is showing relative outperformance and may be considered for accumulation.

Lupin Limited | LTP: ₹2,304.90 | Recommendation: Buy | Target: ₹ 2,460 | Stop-loss: ₹ 2,215

Lupin stock is displaying a structurally bullish price pattern marked by a series of higher highs and higher lows, indicating strong underlying momentum. Following an extended consolidation phase, the stock has witnessed an orderly breakout, suggesting sustained accumulation. The prevailing trend remains positive, with prices trading above key upward-sloping moving averages that continue to act as dynamic support. Market participants may consider accumulating the stock within the given range.

 

Hindustan Unilever Limited | LTP: ₹,2270.20 | Recommendation: Sell Futures | Target: ₹2,120 | Stop-loss: ₹2,340

The FMCG pack is currently exhibiting mixed trends, with Hindustan Unilever emerging as one of the relative laggards in recent months. The latest pullback has stalled near the 200 EMA, reinforcing the prevailing bearish bias. The stock has now slipped below its established trading range, breached intermediate support levels, and formed a bearish flag pattern, indicating the possibility of a continuation of the downtrend. Traders may consider short positions in futures at the specified levels. 

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