Stocks picks: Analyst suggest buying Bajaj Auto, Chambal Fertilisers

Stocks picks: Ajit Mishra of Religare Broking recommends buying Bajaj Auto, Chambal Fertilisers, Premier Energies; check target here

Nifty share price 

Markets traded on a subdued note on Wednesday and ended almost unchanged amid mixed cues. After a flat start, the Nifty oscillated within a narrow range for most of the session and eventually settled largely flat near the 23,907 mark. Sectoral participation remained mixed, with energy, metals, and auto stocks performing well, while financials and private banking counters traded under pressure.  

Broader markets also displayed a mixed trend, with the midcap index gaining around 0.4 per cent, whereas the smallcap index settled largely flat, indicating continued selective participation beyond frontline stocks. Investor sentiment remained cautious amid lingering concerns surrounding the fragile US-Iran truce and elevated crude oil prices. Continued weakness in the rupee and persistent foreign institutional outflows also weighed on market sentiment. However, rotational buying in select sectors, resilience in broader markets, and stock-specific earnings reactions helped the indices remain stable despite the absence of strong directional cues. 

 

Interestingly, the India VIX — a key indicator of market fear that generally moves inversely to the broader market trend — has corrected nearly 15 per cent so far this week and is currently hovering around the 15 mark. However, the improved comfort level is yet to reflect meaningfully in benchmark index movement. While the consolidation phase in the index may continue, we reiterate maintaining a stock-specific approach based on prevailing sectoral trends, while keeping a close check on overnight risk exposure.

Stocks to Buy today: Recommendations by Ajit Mishra of Religare Broking 

Bajaj Auto | LTP: ₹10,801 | Recommendation: Buy | Target: ₹11,570 | Stop-loss: ₹10,390

Bajaj Auto Ltd continues to exhibit relative strength compared to its peers, as the stock has been maintaining a steady higher top–higher bottom structure while sustaining above its key rising moving averages. The price action reflects sustained buying interest, with the stock consistently forming base-on-base patterns and gradually trending higher.  

In continuation of this constructive setup, the stock has recently witnessed a breakout from an elevated base formed in the shape of a cup-and-handle pattern, which signals potential continuation of the prevailing uptrend. Considering this, one may consider initiating long positions in the stock within the mentioned accumulation range to participate in the anticipated upside move.

Chambal Fertilizers & Chemicals | LTP: ₹478.60| Recommendation: Buy ₹512| Stop-loss: ₹460

Chambal Fertilisers is showing signs of emerging from a steady base formation near its long-term support zone, represented by the 200-week EMA. The six-month consolidation phase at the lower end of the corrective structure suggests sustained absorption of supply, thereby limiting further downside pressure. The recent upside breakout indicates a potential resumption of the broader uptrend after nearly a year of corrective decline.  

Supported by renewed momentum in the fertilizer sector and an improving technical setup, the stock appears well-positioned for a potential near-term upward move.

Premier Energies | LTP: ₹1047.90| Recommendation: Buy | Target: ₹1,120| Stop-loss: ₹1,008

We are witnessing renewed interest in the energy and energy-related stocks after a brief consolidation phase, and Premier Energies Ltd is moving in line with the trend. The stock witnessed a strong rally following a breakout from a double-bottom pattern formed at the end of a downtrend. 

Post that, it took a breather, and after a minor dip, it has rebounded strongly by giving a breakout from a flag formation. This indicates structural strength in the price action, and investors may consider accumulating the stock within the mentioned levels to participate in the potential upward move. 

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