Buy & Sell, Oct 10; top stock picks by Ajit Mishra of Religare Broking

Market View

Markets traded in a volatile manner and ended nearly flat, continuing the current corrective phase. While the session started on a positive note, selling pressure in select heavyweight stocks wiped out early gains as the day went on. The MPC meeting results were largely as expected, so they didn't spark much reaction in the market.

Sectoral performance was mixed, with realty and pharma stocks rising, while FMCG and energy sectors saw declines. Interestingly, despite the volatility, broader indices outperformed, gaining between 1 per cent and 1.3 per cent.

Markets are grappling with challenges both domestically and globally, and the upcoming earnings season may increase volatility. As expected, Nifty struggled to break through the resistance zone of 25,150-25,300, and a breach of the recent low near 24,700 could trigger a fresh downward move. On a positive note, the strength in IT and pharma stocks is encouraging, but traders should remain cautious during this corrective phase and adopt a hedged strategy.

 

Stocks Recommendations

Havells India Limited |LTP: Rs 1,938.90 |Buy |Target : Rs 2,060 | Stop-loss: Rs 1,900

Havells witnessed a sharp rally after a breakout from multi-month consolidation phase. However, in line with market corrective phase, the stock retraced towards the neckline of its previous breakout zone. It has rebounded higher taking support from same which also coincides with its short term moving average. It is expected to resume its prior trend and participants can consider accumulating.

Lupin Limited| LTP: Rs 2,286.05| Buy | Target : Rs 2,440 | Stop-loss : Rs 2,210

We are seeing noticeable resilience in the pharma pack and among the prominent names, LUPIN is offering a catch-up move. It has formed a fresh buying pivot above its short-term moving average and its strong demand zone. And, it is on the verge of registering a breakout from a bullish flag pattern suggesting continuation of uptrend. One can thus consider accumulating the stock for a potential up move.

LIC Housing Finance Limited| LTP : Rs 618.95| Sell Futs | Target : Rs 585 | Stop-loss: Rs 635

In the housing finance sector, we’ve observed a mixed trend, with LICHSGFIN showing a negative bias. The stock has experienced a breakdown from a distribution pattern and is now trading below its key support level, including the 200 EMA. All signals point to the likelihood of further downside pressure.

(Disclaimer: Ajit Mishra is a SVP of Research  at Religare Broking Limited. Views expressed are his own.)