Stocks to buy or sell: Domestic benchmark indices ended lower on Thursday, weighed by losses in heavyweight stocks across sectors amid mixed global cues. The index slipped below the 24,100 mark, ending at 24,090.85, losing 117 points, or 0.48%. The Sensex closed at 76,933.59, lower by 539 points, or 0.70%, on the monthly expiry day.
Ajit Mishra, SVP of Research at Religare Broking, highlighted that investor sentiment remained cautious amid mixed global cues, while firmer inflation data keep the US Fed rate-hike expectations alive.
The focus has now shifted to Federal Reserve Chair Kevin Warsh’s remarks at the Jackson Hole symposium.
On the technical front, Mishra highlighted that Nifty is gradually narrowing down its consolidation range into a tight band, indicating a squeeze in volatility. A decisive breakout from either side of the range would provide directional cues and likely determine the next near-term trend, said Mishra.
“The index is approaching its crucial support zone, coinciding with the rising trendline near the 24,100-24,000 zone. A sustained break below this level could extend the correction towards 23,800–23,650. On the upside, 24,200 is likely to act as the immediate hurdle, followed by the 24,300–24,400 zone,” said Mishra.
“Until greater clarity emerges, participants should maintain a cautious, stock-specific approach, focusing on relatively stronger pockets while maintaining disciplined risk and position management,” Mishra said.
Stock recommendations
CG Power and Industrial Solutions | LTP: ₹897.90 | Buy | Target price: ₹974 | Stop loss: ₹860
According to Mishra, CG Power shares, after profit-taking from the highs around ₹980, found support near the 50% retracement of its previous rally, coinciding with the 200-EMA.
It subsequently rebounded and, after a period of consolidation, broke out above the declining trendline, indicating a likely resumption of the uptrend.
The stock continues to trend higher, reflecting inherent strength in its price structure.
“With the technical setup improving, the stock appears well placed to extend its upward momentum. Hence, traders may consider initiating fresh long positions within the recommended buying range,” said Mishra.
Mazagon Dock Shipbuilders | LTP: ₹2,588 | Buy | Target price: ₹2,810 | Stop loss: ₹2,480
According to Mishra, Mazagon Dock Shipbuilders retains a constructive bullish structure, with price action forming higher highs and higher lows following an extended consolidation phase.
The stock is comfortably sustaining above key short- to medium-term moving averages, confirming a positive trend across multiple timeframes.
“The recent upside breakout, supported by improving volumes, strengthens the bullish setup, while RSI maintains a positive bias and MACD reinforces momentum. Investors may consider accumulating the stock within the recommended buying range,” said Mishra.
Hindustan Unilever | LTP: ₹2,013 | Sell Futures | Target price: ₹1,940 | Stop loss: ₹2,050
Mishra highlighted that the FMCG sector continues to underperform, and within the space, Hindustan Unilever remains in a lower-top, lower-bottom formation.
The stock has failed to sustain the rebound, forming lower highs and consistently encountering resistance from its moving averages.
“The stock has slipped below its support zone and formed a shorting pivot. We expect the selling pressure in the stock to continue, and hence, one can look for a selling opportunity through futures,” said Mishra.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
