Ajit Mishra of Religare Broking Reveals Thursday Market Strategy and Stock Ideas

Navigating Market Volatility: Insights and Stock Picks from Religare Broking

Ajit Mishra outlines a cautious market strategy amid ongoing volatility, highlighting key stock recommendations for investors.

Market Overview: A Day of Mixed Signals

On Wednesday, Indian markets exhibited volatility, ultimately closing lower and extending the ongoing corrective trend. The benchmark indices initially showed promise, with the Sensex rising over 500 points and the Nifty surpassing the 22,800 mark. However, this momentum could not be sustained, leading to a decline in the Nifty to 22,620.45.

Sector performance was mixed, with realty, banking, and auto stocks rebounding, while pharma and healthcare sectors faced significant pressure. The broader market sentiment remains cautious, influenced by global factors such as elevated crude oil prices, which are hovering around $103 per barrel, and rising US Treasury yields, which recently touched 5.293 percent. Additionally, persistent foreign selling, with Foreign Institutional Investors (FIIs) offloading nearly ₹9,980 crore on Tuesday, has added to the market’s woes.

Technical Analysis: Key Levels to Watch

From a technical standpoint, the Nifty’s inability to maintain levels above the 22,750–22,800 range indicates a bearish sentiment. The immediate support level is seen at 22,600, followed by 22,400, while resistance is expected at 22,750–22,800 and a significant barrier at 23,000. With the index trading near six-month lows, the market’s broader participation remains weak, necessitating a cautious and selective investment approach.

Stock Recommendations: Focus on Strength

Mishra has identified three stocks for investors to consider, reflecting a mix of potential upside and caution:

• Kotak Mahindra Bank Limited (LTP: ₹417) – Recommendation: Buy, Target: ₹447, Stop-loss: ₹402. The stock shows relative strength, rebounding from a key support zone and indicating potential for an upward move.
• Engineers India Limited (LTP: ₹309.60) – Recommendation: Buy, Target: ₹333, Stop-loss: ₹298. The stock maintains a bullish structure with positive momentum and strong market participation.
• Oil & Natural Gas Corporation Limited (LTP: ₹225.70) – Recommendation: Sell Futures, Target: ₹217, Stop-loss: ₹230. ONGC has shown a breakdown below key support levels, suggesting a bearish outlook.

Key Highlights

• Markets closed lower on Wednesday, extending the corrective trend.
• Sector performance was mixed, with banking and realty showing resilience.
• Key support for Nifty is at 22,600, with resistance at 22,750–22,800.
• FIIs continue to sell, impacting market sentiment and liquidity.
• Stock recommendations focus on relative strength and technical setups.

Investor Note: As markets navigate through volatility, investors should adopt a selective approach, focusing on stocks with strong technical setups and potential for recovery while closely monitoring key support levels.