Trading guide: Nifty eyes 24,750; AB Capital, SBI, LIC HFL on analyst radar

Stocks to buy: Ajit Mishra of Religare Broking recommends buying the shares of Aditya Birla Capital, LIC Housing Finance, and SBI today

Market View by Ajit Mishra, Religare Broking

Markets remained volatile but managed to post strong gains, largely supported by favourable global cues and easing crude oil prices. After an initial gap-up opening, the Nifty traded under pressure in the first half; however, a strong rebound in heavyweights across sectors during the latter half helped the index settle around 24,330, up 1.24 per cent. The upmove was broad-based, with banking, financials, and realty leading the rally, while energy and FMCG remained relatively subdued. Broader markets continued to outperform, with midcap and smallcap indices advancing around 2 per cent each, reflecting improved risk appetite.

 

 

The rally was primarily driven by cooling crude oil prices amid reports of a potential US–Iran deal to end the conflict, although there was no official confirmation. Additionally, supportive domestic developments, including the government’s credit guarantee scheme for businesses, boosted banking stocks. Positive global cues from US markets and stock-specific earnings momentum further aided the upmove.

 

The Nifty rebounded sharply from its support zone near the short-term moving average (20 DEMA) around 24,000 and ended on a firm note. The rebound in banking stocks, following their recent phase of underperformance, also played a crucial role. Indications favour further upside towards 24,550 and then 24,750 levels. On the downside, support remains intact at 24,000–23,800. Traders should maintain a positive yet cautious stance, focusing on stock-specific opportunities across sectors, while closely monitoring crude oil prices and geopolitical developments for further directional cues.

Stocks Recommendations

Aditya Birla Capital | LTP: ₹ 369.30 | Recommendation: Buy | Target: ₹ 395 | Stop-loss: ₹ 354

AB Capital has staged a strong V-shaped recovery from its long-term support near the 200 EMA and has delivered a decisive breakout above its trendline resistance, marking a fresh all-time high. The broader trend remains firmly bullish, with the recent correction appearing to be a brief consolidation within the ongoing uptrend. The resumption of upward momentum, supported by a noticeable increase in volumes, indicates renewed buying interest. With the trend intact, the setup continues to favour a bullish stance, offering opportunities on the long side.

LIC Housing Finance | LTP: ₹ 582.15| Recommendation: Buy | Target: ₹ 622 | Stop-loss: ₹ 560

LIC Housing has finally ended a two-year corrective phase, as indicated by a breakout above its declining trendline, suggesting a potential trend reversal. It has sustained levels above the breakout zone and key long-term moving averages, including the 200-day EMA, reinforcing the strength of the move and lowering the risk of a false breakout. Additionally, a breakout from a pivot level on the daily chart, supported by rising volumes, highlights strong market participation. Based on these technical factors, long positions may be considered within the specified range.

State Bank of India | LTP: ₹ 1096| Recommendation: Buy | Target: ₹ 1172 | Stop-loss: ₹ 1054

The banking index has rebounded strongly from its support zone following a recent phase of underperformance, indicating potential for further upside. In line with this, the stock has recovered after a period of consolidation. It appears to be forming a cup-and-handle pattern, and a breakout above the ₹1120 level could trigger further gains, signaling continuation of the bullish trend. With a favourable risk-reward profile, the overall bias remains positive, and long positions may be considered.  ==============================  (Disclaimer: This article is by Ajit Mishra, SVP – research, Religare Broking. Views expressed are his own.)