Stock picks: Analyst prefer Aurobindo Pharma, Sona BLW, Tata Steel

Stock picks: Ajit Mishra of Religare Broking recommends buying Aurobindo Pharma, Tata Steel & Sona BLW; here's why

Nifty share price

Markets witnessed a volatile yet relatively stable session on Wednesday following the sharp sell-off seen over the previous four trading sessions. The Nifty opened on a weak note amid mixed global cues and persistent concerns surrounding elevated crude oil prices, but gradually recovered during the session on selective buying in heavyweight counters. However, selling pressure resurfaced in the latter half, trimming most of the gains, and the index eventually ended marginally higher at 23,412.6.

 

Sectoral participation remained mixed, with metals, energy, and FMCG stocks showing relative resilience, while IT and auto counters continued to witness pressure. Broader markets displayed strength despite the volatility, with the midcap index gaining nearly 1 per cent and the smallcap index advancing 0.38 per cent, indicating selective buying interest in the broader space.

 

 

The rebound was largely driven by oversold market conditions and buying in select heavyweight stocks. However, investor sentiment remained cautious amid ongoing geopolitical uncertainty surrounding the US-Iran conflict and persistent foreign institutional outflows. Market participants also reacted to the government’s decision to raise import duties on gold and silver, which led to sharp moves across bullion-linked counters and ETFs. Meanwhile, stock-specific action driven by earnings announcements continued to dominate individual pockets of the market.

 

Technically, the Nifty rebounded after hitting an intraday low of 23,262 and has nearly filled the gap around the 23,150 level. However, the banking index still has room to close its gap near the 52,800 mark, while the IT pack continues to drift lower gradually. Overall, the index is likely to face selling pressure on rebounds towards the 23,600–23,700 zone, and participants should align their positions accordingly. On the sectoral front, traders may continue to find opportunities on both sides of the market, though we maintain our preference for pharma, healthcare, metals, and energy counters for long trades.

Stock recommendations by Ajit Mishra of Religare Broking

Aurobindo Pharma Limited | LTP: ₹1,497.50| Recommendation: Buy | Target: ₹1,598| Stop-loss: ₹1,440

 

Aurobindo Pharma continues to exhibit strong bullish momentum, supported by a sustained primary uptrend and a consistent higher high–higher low structure on the weekly timeframe. The stock is trading within a well-defined ascending channel, where every corrective decline is attracting strong buying interest at lower levels, reflecting sustained demand. The formation of bullish flag patterns within the broader channel further strengthens the continuation outlook.

 

The stock remains firmly positioned above its key short-, medium-, and long-term moving averages. Rising volumes during upward moves indicate accumulation activity, while momentum indicators continue to support the likelihood of further outperformance in the near term.

 

Sona BLW Precision Forgings | LTP: ₹591.35| Recommendation: Buy | Target: ₹635| Stop-loss: ₹568

 

Sona BLW Precision Forgings is maintaining a positive price structure, backed by a decisive breakout and resilient price action near recent highs. The stock is trading comfortably above its key moving averages across multiple timeframes, highlighting the strength of the ongoing uptrend. Recent consolidation near elevated levels points toward healthy absorption of supply and reflects underlying buying interest.

 

Expanding volumes during the rally suggest continued accumulation, while momentum indicators continue to remain positively aligned. The broader higher top–higher bottom formation keeps the outlook constructive for further upside.

 

Tata Steel Limited | LTP: ₹219.62| Recommendation: Buy | Target: ₹235| Stop-loss: ₹211

 

Tata Steel is showing renewed strength after witnessing a breakout toward fresh swing highs,

reinforcing the prevailing bullish trend. The stock is sustaining well above its important moving averages, indicating improving medium- to long-term momentum. Strong participation during the breakout, supported by rising volumes, reflects active buying interest at current levels. 

 

Momentum indicators continue to hold a positive bias, suggesting the possibility of further extension in the ongoing up move. Overall, the technical setup remains favorable for continued strength in the near term.

 

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