Nifty outlook: Index to consolidate; Ajit Mishra suggests 3 stocks to buy

Nifty outlook for Feb 12: Index consolidates near 25,950 amid mixed sectoral trends. Ajit Mishra recommends Glenmark Pharma, Nippon Life and TVS Motor as stocks to buy today.

Nifty Outloook, Feb 12

 

Markets traded in a lackluster manner on Wednesday and ended almost unchanged, taking a breather after the recent surge. After an initial uptick, the Nifty index hovered within a narrow range for most of the session and finally closed at 25,953.85. Sectoral trends were mixed, keeping participants engaged, with auto, pharma and realty among the top gainers, while weakness in IT, energy and FMCG stocks restricted any meaningful upside. 

 

The broader indices moved largely in line with the benchmark and ended on a flat note yesterday, indicating limited participation beyond select pockets.

 

Sentiment remained cautiously positive amid mixed cues. Investors reacted to favourable earnings announcements from select companies, but muted global signals capped momentum and prevented follow-through buying. Continued foreign institutional activity and currency volatility also influenced trading behavior, resulting in a selective and stock-specific approach across sectors.

 

 

The pause in the index is largely on expected lines, and some further consolidation may unfold over the coming sessions, though the overall tone is likely to remain positive. Participants should continue to focus on stock selection and use this consolidation phase to accumulate quality names across sectors, except IT, which continues to face pressure. Within the broader market, preference remains for midcap stocks, with selective exposure to smallcaps based on relative strength and risk-reward.

 

Stocks to Buy Today: Ajit Mishra Recommendations 

 

Glenmark Pharmaceuticals Limited | LTP: ₹2,015.2 | Recommendation: Buy | Target: ₹2,150| Stop-loss: ₹1,940

Glenmark Pharma share price has consistently held above its long-term moving average (200-day EMA) and its previous breakout zone near the 1,800-mark for a prolonged period, reflecting strong underlying support. The measured decline has taken the form of a structured base, which could potentially evolve into a bullish continuation pattern. Currently, Glenmark Pharma stock has given a range breakout near the key short term averages, indicating the possibility of renewed upward momentum. Considering the sustained stability in price action and the favourable risk-reward setup, long positions may be considered in the stock.

 

Nippon Life India Asset Management Limited | LTP: ₹950.25 | Recommendation: Buy | Target: ₹1,020 | Stop-loss: ₹912

After hitting a fresh high, Nippon Life stock witnessed profit booking, leading to a pullback toward the neckline of the previous breakout zone. The decline was contained, and the stock subsequently traded in a narrow range for a few sessions, forming a small base. Subsequently, a strong bullish candle from the lower end of this range engulfed the entire consolidation, establishing a fresh buying pivot at current levels. This price action indicates that bulls have regained control and are likely to drive the stock higher. Given the constructive chart structure, traders may consider initiating long positions at current levels.

 

TVS Motor Company Limited | LTP: ₹3,865.10 | Recommendation: Buy | Target: ₹4,130 | Stop-loss: ₹3,720

TVS Motor share price maintains a strong bullish structure, forming a consistent pattern of higher highs and higher lows, confirming the continuation of the primary uptrend. After a brief pullback toward the 100-EMA, it witnessed strong buying interest and rebounded sharply, reinforcing the strength of the intermediate trend. With price trading near record highs and supported by constructive price and volume action, the setup favors continuation of the uptrend. Hence, long positions can be considered within the specified range.

   

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Disclaimer: This article is by Ajit Mishra, Senior Vice President – research, Religare Broking. Views expressed are his own.