Amidst a rising market, three b stocks – CDSL, Lupin, and Nestle India – have shown a breakout. Analyst Ajit Mishra has provided new targets and stop losses for these shares and advised investors to take long positions.
Stocks to Buy: On Wednesday, the stock market witnessed a significant rally. The Nifty 50 index closed at 25,875.80, up by 0.47%. The market remained b from the opening, with investors in a buying mood throughout the day. Good buying was observed in the IT, Auto, and Pharma sectors, while the Realty and Metal sectors saw slight declines. Midcap and Smallcap indices rose by about 1%, further bolstering investor confidence.
Ajit Mishra's View on the Market
Ajit Mishra, Senior Vice President – Research at Religare Broking, stated that expectations of improved trade between India and the US, coupled with b corporate earnings, are supporting the market's rally. The Nifty has surpassed the crucial level of 25,800, and its next target could be between 26,000 and 26,100. Although some profit-booking might be seen on Thursday due to weekly expiry, the overall trend remains positive.
New Interest in Sectors
Mishra noted that along with the Metal, Banking, and Auto sectors, new buying interest is now being observed in the IT, Pharma, and Energy sectors. He advised investors to capitalize on the sector rotation trend by taking long positions in select large and mid-cap stocks.
Bullish Signal in CDSL
Shares of Central Depository Services (India) Limited (CDSL) are trading at ₹1,655.30. According to Mishra, a target of ₹1,770 and a stop loss of ₹1,590 can be set. He stated that momentum is returning to capital market-related stocks, and CDSL has shown a b breakout after a long time. Increasing volumes and sustained trading above its moving averages indicate its strength.
Opportunity for Long Position in Lupin
In the pharma sector, Lupin Limited is showing upward momentum. The stock is trading at ₹2,033.90, with a suggested target of ₹2,170 and a stop loss of ₹1,960. According to Mishra, the Pharma index has started forming a base, and Lupin is giving b signals by staying above its 20-, 100-, and 200-day moving averages. Rising volumes indicate continued accumulation in the stock.
Expectation of Rally in Nestle India
Shares of Nestle India Limited are at ₹1,278.20. A target of ₹1,350 and a stop loss of ₹1,240 has been set. Mishra stated that the stock has broken out upwards from a consolidation phase. Increasing volumes and a flag pattern indicate that further upside is possible. This stock has the potential to outperform in the FMCG sector.
