Market View
Nifty: CMP: 25,052.35
The markets experienced another volatile session, ultimately closing nearly flat amid mixed signals. After an initial dip, the Nifty climbed to a new record high, but profit-taking in the final hour erased all the gains. Sector-wise, mixed trends kept traders engaged, with IT and pharma sectors showing decent gains, while realty and banking lagged. The broader indices mirrored the benchmark index, ending almost unchanged.
Currently, we observe a balancing act, as the ongoing underperformance of major banking stocks weighs on market sentiment, while the strength in select heavyweights from IT, FMCG, metals, and energy on a rotational basis helps maintain a positive tone. The outlook suggests further consolidation in the index, but the bias remains positive. Traders should continue to focus on stock selection.
Stocks Recommendations
Power Finance Corporation Limited | LTP: Rs 538 | Buy | Target: Rs 575 | Stop-loss: Rs 520
PFC has registered a decisive breakout from the intermediate falling resistance trendline with strong volumes. It has also formed a fresh buying pivot by holding above its short term moving average i.e. 20 EMA. Following price action and the uptick in volumes, it is set to edge higher. Traders can consider longs in the stock.
Granules India Limited | LTP: Rs 708.90 | Buy | Target: Rs 755 | Stop-loss: Rs 688
We are seeing decent traction in selective pharma stocks and Granules is leading from the front. In continuation of the prevailing trend, it has witnessed a fresh breakout after forming a base around its record high. We expect a bullish tone to continue so traders can consider creating fresh longs.
Wipro Limited | LTP: Rs 534.60 | Buy | Target: Rs 565 | Stop-loss: Rs 520
IT pack is among the top performing among the key sectors and Wipro is now catching up with other heavyweights. It has registered a decisive breakout from a consolidation range with noticeable volumes and likely to fill the open gap and inch further higher.
(Disclaimer: Ajit Mishra is a SVP of research at Religare Broking. Views expressed are his own.)
First Published: Aug 29 2024 | 6:40 AM IST
