Stocks to buy or sell: Ajit Mishra of Religare Broking recommends 3 names for short-term trading

Stocks to buy or sell: The Indian stock market ended in the green on Thursday on value buying amid mixed global cues. The Sensex rose by 238 points, or 0.31%, to close at 76,741.82, while the Nifty 50 ended at 23,962.80, gaining 81 points, or 0.34%.

Broader markets outperformed, with the Nifty Midcap 100 and Smallcap 100 indices jumping 1.38% and 1.80%, respectively, reflecting improved market breadth and renewed buying interest.

Easing geopolitical concerns after reports suggested Iran's willingness to resume negotiations and a decline in the India VIX supported sentiment.

Technically, Ajit Mishra, SVP of Research at Religare Broking, believes the Nifty has lost some momentum and that a broader phase of consolidation could be underway.

Mishra believes the index may find support in the 23,650–23,800 zone, while the 24,150–24,400 region may act as the immediate resistance band.

"Given the prevailing market setup, we recommend maintaining a cautious stance on the index and focusing on relatively stronger sectors such as pharma, realty, and select banking names for long positions, while adhering to disciplined risk management," said Mishra.

Stock picks for the short term

Ajit Mishra recommends trading strategies for the following three stocks for the next 1-2 weeks:

Mahindra and Mahindra Financial Services | LTP: ₹336.75 | Buy | Target price: ₹365| Stop loss: ₹323

As per Mishra, after remaining within a broader consolidation for nearly four months, the Mahindra and Mahindra Financial Services share price has shown signs of a trend reversal while holding firmly above its key long-term support, the 200-week EMA.

The recent price action reflects improving strength as the stock has reclaimed its key short- to medium-term moving averages and formed a bullish pivot, leading to a breakout from a double-bottom pattern.

"The combination of a strong base formation and improving momentum suggests that the stock is well-positioned for a trend reversal and will witness a meaningful upside move from current levels," said Mishra.

Sun Pharmaceutical Industries | LTP: ₹1,938.70 | Buy | Target price: ₹2,120 | Stop loss: ₹1,850

Mishra pointed out that the pharmaceutical sector continues to witness sustained buying interest, with Sun Pharma participating in the sector-wide strength.

After consolidating for nearly two years, the stock appears poised for a fresh breakout, having reclaimed its previous record high, which signals the resumption of its long-term uptrend.

It has also formed a fresh buying pivot around the current levels while continuing to trade firmly above its 20-day DEMA, indicating sustained strength.

"Considering the robust technical setup and favourable risk-reward profile, investors may consider accumulating the stock on a cash delivery basis," said Mishra.

Indian Energy Exchange | LTP: ₹118.58 | Sell Futures| Target price: ₹112 | Stop loss: ₹122

Mishra highlighted that Indian Energy Exchange (IEX) continues to exhibit a weak structure, underperforming the broader market as the primary downtrend remains intact.

He added that the recent rebound ended with a breakdown from a tight trading range after the stock failed to overcome its key short- to medium-term moving averages, reflecting a renewed selling pressure.

"The overall technical setup remains negative, with the downtrend likely to extend. Traders may consider initiating short positions in futures at the recommended levels while maintaining the prescribed stop loss," 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.