Indices View
Nifty: CMP: 24,770.20
The markets edged higher on Wednesday, gaining nearly half a percent, continuing the ongoing trend. Following a flat start, the Nifty traded within a narrow range but saw selective buying in the final hour, pushing the index to close near the day’s high at 24,770. The sectoral trend remained mixed, with FMCG, pharma, and metal sectors posting decent gains, while profit-taking in banking and financial majors limited the upside. Meanwhile, buoyancy in the small-cap space contributed to positive market breadth, settling on the advancing side.
Rotational buying in heavyweights across sectors is aiding the index’s gradual climb, though inconsistency in the banking majors is keeping participants cautious. On the index front, Nifty may pause around 24,850 before moving towards the 25,000 level. In the event of a dip, we expect the index to find support in the 24,450-24,600 zone. In addition to domestic factors, we recommend closely monitoring the US markets for further cues.
Stocks Recommendations
HCL Technologies |LTP: Rs 1,677.25 | Buy |Target: Rs 1,795 | Stop-loss: Rs 1,620
HCLTECH has been showing significant momentum, maintaining a strong position as part of the IT sector’s recent rally. The stock has been on a consistent uptrend over the past few months, rebounding from the neckline of its former resistance zone. Additionally, it has recently broken out from a cup and handle pattern on the daily chart, indicating a fresh wave of buying interest.
Mahindra & Mahindra Financial Services | LTP: Rs 307.75 | Buy |Target: Rs 335 |Stop-loss: Rs 295
M&M Fin has established a fresh buying pivot around the neckline of its consolidation range and appears poised for the next phase of its upward movement. The ongoing recovery in the banking and financial sector is also contributing to the positive outlook.
Hindustan Unilever | LTP: Rs 2,791.20 | Buy |Target: Rs 2,950 | Stop-loss: Rs 2,720
Hindustan Unilever has registered a breakout, after forming a base above its short term moving average i.e. 20 DEMA. The price action and volume activity indicate a new high soon so one can go long for an upside target of 2,950.
(Ajit Mishra is senior vice president of research at Religare Broking. Views expressed are his own.)
First Published: Aug 22 2024 | 6:53 AM IST
