Paytm, DLF, L&T Finance among top stock picks by Ajit Mishra; here's why

Weekly market outlook by Ajit Mishra: The analyst from Religare Broking says Nifty remains in consolidate mode; among stocks he recommends buying DLF, L&T Finance and Paytm this week.

Stock market view by Ajit Mishra, Religare Broking

  Markets started the month on a positive note, gaining nearly half a percent amid mixed cues. After a firm opening, the Nifty gradually edged higher during the first half of the session but failed to decisively surpass Tuesday's high and traded lacklustre thereafter. Consequently, the index settled at 24,005.85, up 0.59 per cent.  Sectoral participation remained mixed, with realty, FMCG, and auto emerging as the top gainers, while IT and metal stocks continued to trade under pressure. Broader markets also maintained a positive bias, with both midcap and smallcap indices posting modest gains, reflecting sustained participation beyond the benchmark indices.  The positive undertone was supported by encouraging June auto sales data, which boosted sentiment across the automobile space, while the continued decline in Brent crude prices towards the $71 per barrel mark provided further relief on inflationary concerns.  However, gains remained measured due to lingering uncertainty surrounding the progress of the US-Iran peace negotiations and concerns over the domestic monsoon, as June rainfall remained below normal, raising questions about the agricultural outlook.  Technically, we continue to maintain our consolidation view on the Nifty until it registers a decisive breakout from the 23,800–24,200 range.  In the meantime, we recommend maintaining a stock-specific approach, focusing on relative outperformers across sectors. We maintain our negative stance on IT due to its continued weakness, while opportunities are emerging in banking, realty, auto, pharma, and select industrial names. 

Stocks Recommendations by Ajit Mishra, SVP - Research at Religare Broking.

  DLF Limited | LTP: ₹648.70| Recommendation: Buy | Target: ₹693| Stop-loss: ₹623  The realty sector is showing renewed strength after a phase of underperformance, with DLF moving in line with the trend. The stock has formed a strong base near the 100 per cent Fibonacci extension level at the lower end of its corrective phase.  It has also broken out of a triangle pattern that developed toward the end of the correction, indicating a potential reversal from a downtrend to an uptrend.  Furthermore, the stock has reclaimed its 200-day Exponential Moving Average (EMA), reinforcing the bullish outlook. Based on this technical setup, fresh long positions can be considered within the mentioned buying range.  L&T Finance Limited | LTP: ₹312.70| Recommendation: Buy | Target: ₹335| Stop-loss: ₹301  LTF has registered a decisive breakout above a declining trendline, signalling the end of its six-month corrective phase. The stock has also reclaimed and is sustaining well above its key short, medium and long-term moving averages, indicating a strong resumption of the prevailing uptrend.  The breakout is supported by improving price structure and positive momentum, reinforcing the bullish outlook. Considering this favourable technical setup, long positions can be considered within the mentioned buying range.  One 97 Communications Limited | LTP: ₹1,203.70| Recommendation: Buy | Target: ₹1,310 | Stop-loss: ₹1,150  The One 97 Communications Limited stock has formed a strong base above the neckline support of its previous breakout zone, which coincides with the 100 and 200 WEMA. It has witnessed a fresh breakout from this base in the form of a Cup & Handle pattern, indicating the potential for a fresh up move.  The constructive price structure, coupled with positive price action, reinforces the bullish outlook and hence, traders can accumulate the stock within the recommended levels.  (Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own. Click for analyst disclaimer.)