Stock recommendation: How to trade Bajaj Finserv, Ashok Leyland today?

Stocks to Buy, July 24: Ajit Mishra of Religare Broking suggests buying Ashok Leyland, Bajaj Finserv and Jindal Steel

Market View

Markets traded with a positive bias and gained over half a percent, offering some relief after the recent decline. Following an initial uptick, the Nifty moved in a narrow range during the first half; however, strength in select heavyweights, particularly from the banking and financial sectors, propelled the index higher. As a result, it surpassed the short-term moving average (20 DEMA) and moved closer to the previous swing high zone near 25,250, eventually settling at the 25,219.90 level.

 

On the sectoral front, the trend remained mixed, with auto, banking, and financials ending in the green, while realty and FMCG closed in the red. The broader market also reflected a mixed tone, as the midcap index gained nearly half a percent while the smallcap index ended almost flat. The ongoing recovery is being driven primarily by strength in banking majors, while heavyweights from other key sectors are showing signs of stabilisation following the recent correction.  However, the IT sector, which holds significant weight in the index, continues to face selling pressure and is gradually inching lower. Participants will closely watch Infosys’ results, as its performance will be crucial in determining the next leg of the move for the IT space. Amid these developments, we maintain our cautious stance and continue to recommend a hedged approach.  Track Stock Market LIVE Updates

Stocks Recommendations

Ashok Leyland | LTP: ₹124.60 | Buy | Target: ₹134 | Stop-loss: ₹119

Rate-sensitive sectors like auto are steadily gaining momentum, and within this space, Ashok Leyland presents a fresh buying opportunity. The stock has been trending higher for the past three months, following a breakout from its corrective phase, and is now inching toward its record highs. It continues to trade above its short-term 50 EMA and has formed a bullish pivot after a brief dip, indicating renewed buying interest. The positive price action, combined with a supportive sectoral backdrop, suggests potential for further upside.

Bajaj Finserv | LTP: ₹2,060.50 | Buy | Target: ₹2,210 | Stop-loss: ₹1,990

Bajaj Finserv continues to exhibit noticeable strength amid the prevailing corrective phase, as it trades in a tight consolidation range just above the neckline of its previous breakout zone—indicating healthy accumulation by stronger hands. With improving traction in the BFSI space, we expect the stock to resume its uptrend soon. Participants can consider this consolidation as an opportunity to accumulate the stock at the mentioned levels.

Jindal Steel & Power | LTP: ₹977.40 | Buy | Target: ₹1,050 | Stop-loss: ₹944

The metal space has been performing well, with most stocks participating in the up move on a rotational basis. Jindal Steel remains a consistent performer, showing a gradual recovery after retesting its long-term moving average (200 DEMA), which also led to a breakout above the declining trend line recently. Besides, the stock is now trading near the completion of a trend continuation pattern, indicating the potential for a strong directional move ahead. The chart setup, supported by the confluence of multiple moving averages, reflects a strong demand zone. We expect the prevailing consolidation to conclude soon; hence, participants can consider initiating fresh long positions at the mentioned levels.

(Disclaimer: Ajit Mishra is SVP-Research at Religare Broking. Views expressed are his own.)