Nifty eyes 24,000; Bharat Forge, Tata Steel, Union Bank on analyst radar

Stocks to buy: Ajit Mishra of Religare Broking recommends buying the shares of Bharat Forge, Tata Steel, and Union Bank today

Market View

Markets surged sharply on Wednesday, extending gains for the fourth consecutive session, supported by favourable geopolitical cues. The Nifty opened with a strong gap-up and continued to build on gains throughout the session, eventually closing near the day’s high at 23,997.35, up 3.8 per cent. The up move was broad-based, with all major sectors trading in the green—led by rate-sensitive segments such as realty, auto, and banking. Broader markets outperformed the benchmarks, with midcap and smallcap indices rallying over 4 per cent, reflecting strong risk-on sentiment and improved market breadth.

The rally was primarily driven by a sharp improvement in global sentiment following the announcement of a temporary ceasefire between the US and Iran, which led to a significant cooling in crude oil prices and eased concerns around inflation and global growth. Additionally, the Reserve Bank of India’s policy decision to maintain status quo on rates with a neutral stance was perceived as supportive for equities. Stability in bond yields, a stronger rupee, and short covering after the recent correction further accelerated the up move. 

 

While the sharp rally is encouraging, its sustainability will depend on continued follow-through buying and stability in crude oil prices and global cues. On the index front, the Nifty has approached its immediate hurdle around the 24,000 mark after four consecutive sessions of gains and may witness a breather at higher levels. However, the overall tone remains positive, with a support cushion placed in the 23,400–23,600 zone. A decisive move above 24,000 could propel the index towards the 24,300–24,700 range. Traders may focus on stock-specific opportunities across sectors, with a preference for rate-sensitive segments, while maintaining prudent position sizing amid elevated volatility.  READ | Looking to buy? These 3 stocks deserve a spot in your portfolio; here's why

Stocks to buy: Recommendations by Ajit Mishra, Religare Broking

Bharat Forge Limited| LTP: ₹ 1781.40| Recommendation: Buy | Target: ₹ 1900| Stop-loss: ₹1720

Bharat Forge has maintained a steady uptrend since April 2025, supported by a strong base at its 200-week EMA. The stock has demonstrated notable resilience, avoiding meaningful corrections despite broader market weakness. The recent pullback offered a healthy retracement, followed by a range breakout backed by strong volumes, indicating the formation of a bullish pivot. With the overall trend intact, the stock appears well-positioned to extend its upward move. Investors who missed earlier opportunities may consider accumulating at current levels.

Tata Steel Limited| LTP: ₹ 204.18| Recommendation: Buy | Target: ₹ 224| Stop-loss: ₹ 195

Metal stocks continue to exhibit strength, and Tata Steel aligns well with this trend, showcasing a constructive bullish setup. The stock is holding firmly above key moving averages and gradually regaining momentum after a corrective phase. The recent consolidation has helped establish a higher base, indicating accumulation at lower levels. Price action remains resilient, with consistent buying interest visible on dips and supported by healthy volume trends. Traders may consider initiating long positions within the prevailing range.

Union Bank of India| LTP: ₹ 185.66| Recommendation: Buy | Target: ₹ 203| Stop-loss: ₹ 177

Union Bank of India recently retested the neckline of its previous breakout during the pullback and formed a short-term base, effectively containing further downside. The stock has since rebounded strongly, reclaiming its 20- and 50-day EMAs, which had earlier acted as resistance. The broader chart structure remains positive, with the long-term trend supported by prices sustaining above a multi-year cup-and-handle pattern. With momentum turning favourable, the uptrend is likely to continue, and traders may consider initiating long positions within the specified range.  ======================================== 

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