Religare Broking’s Ajit Mishra picks important companies to buy and sell, such as Vedanta and Tata Consumer Products, after the Nifty 50 fell for five consecutive sessions. He also cautions traders about the present state of the market.
Nifty Extends Losing Streak
On September 25, the benchmark Indian stock market Nifty 50 closed down for the fifth straight day due to ongoing worries about Trump’s tariffs and other protectionist policies. The market is feeling the effects of ongoing FII withdrawals, the lack of new bullish catalysts, and the ongoing underperformance of important sectors.
Around 25,040, the Nifty 50 dropped below its critical short-term support, the 20 DEMA, and ultimately finished at 24,890.85, down 0.66 percent.
“Persistent underperformance in key sectors, combined with ongoing FII withdrawals, is impacting on overall sentiment in the lack of new catalysts,” said Ajit Mishra, SVP of research at Religare Broking.
Key Stock Trading Picks
Mishra emphasized that the immediate support moves to 24,750, which is the 100 DEMA, if the Nifty breaks below the 20 DEMA.
Mishra thinks that oversold circumstances in a few heavyweights might lead to a recovery, but the upside is probably going to be limited above 25,050–25,150.
“Before making strong bets, we encourage traders to monitor positions and wait for more information,” Mishra said.
Short-term stocks to purchase and sell
Vedanta | Buy | Target price: ₹498 | Stop loss: ₹444 | Last trading price (LTP): ₹461.65
Despite the overall market drop, metal counters are shown resilience, and Vedanta is following suit.
The stock has often recovered from short-term profit-taking to find support at lower levels.
It has emerged from a downward channel and is now maintaining a strong hold above the important moving average ribbon.
Above the 20 EMA and the support of its consolidation breakout, a fresh purchasing pivot has appeared.
Despite market pressure, the price and volume increase indicates that there is still room for further growth. Although there is an intermediate barrier close to ₹475, many tests of this level point to a probable breakthrough. New long positions may be started in accordance with the specified level in light of these circumstances,” Mishra said.
Tata Consumer Breakout Opportunity
Tata Consumer Products | Buy | Target price: ₹1,220 | Stop loss: ₹1,100 | LTP: ₹1,134.20
With the help of increased volumes, the stock has broken out of its five-month declining channel.
After a short lull, Tata Consumer Products has established a fresh purchasing pivot above the moving average ribbon’s confluence, which is now spreading out in a favorable alignment.
“The breakout’s accompanied increased volumes attest to new accumulation and rekindled purchasing appetite. According to Mishra, “this technical setup shows that the upward bias will continue, and the stock may reach record highs.”
“There is still upside potential towards ₹1,220, and ₹1,100 is a good support zone that gives investors an appealing risk-reward profile,” Mishra said.
Sell October Futures at Bandhan Bank | LTP: ₹158.75 | Target price: ₹152 | Stop loss: ₹162
With a persistent lower-top, lower-bottom formation, Bandhan Bank is still showing a downward trend.
Bandhan Bank Bears Persist
The stock encounters resistance at the 100 WEMA on each recovery effort, but it is unable to maintain and resumes its drop. Recent events have followed a similar pattern, with continued weakening after the rejection of a retreat towards the 100 WEMA.
The stock has resumed its downward trajectory after a short stabilization, this time with increasing volumes, suggesting that bears are taking back control.
“The downturn is probably going to continue in the next sessions, and the bias is still bearish given this technical structure. To properly control risk, traders might search for short opportunities in Bandhan Bank futures at certain levels while maintaining a strict stop-loss strategy, according to Mishra.