Stocks to buy or sell: From Aurobindo Pharma to UPL— Ajit Mishra of Religare Broking shares strategies for 3 names

Stocks to buy or sell: Indian stock market benchmarks, the Sensex and the Nifty 50, snapped their 4-session losing streak on Thursday, December 4. However, the benchmarks ended with modest gains, while mid- and small-cap indices closed lower, primarily due to the rupee's weakness, foreign capital outflow, and caution ahead of the RBI MPC outcome.

The Sensex ended at 85,265.32, rising 159 points, or 0.19%, while the Nifty 50 rose 48 points, or 0.18%, to end at 26,033.75 on Thursday. The BSE Midcap index fell 0.19% while the Smallcap index dropped 0.32%.

"Weakness in the rupee continues to pressure sentiment, coupled with caution ahead of the MPC policy outcome. Additionally, mixed global cues failed to spark any meaningful reaction. Going ahead, with the MPC outcome in focus, a 25 bps rate cut appears largely priced in, making the committee’s commentary more crucial for determining the next directional move," said Ajit Mishra, SVP of Research at Religare Broking.

Mishra underscored that the Nifty 50 is still holding above its first support zone—the 20 DEMA around 25,950—despite the volatility, aided by renewed buying interest in private banks and IT. However, the mixed performance of heavyweights and subdued small-caps is keeping overall sentiment in check.

"We maintain a positive yet cautious outlook, emphasising disciplined stock selection and prudent trade management," said Mishra.

Stocks to buy or sell

Mishra suggests buying the following two stocks for the next one to two weeks, while selling one. Take a look:

Aurobindo Pharma | Buy | Target price: ₹1,320 | Stop loss: ₹1,168

Mishra pointed out that the pharma sector continues to show notable resilience, and Aurobindo Pharma is moving in alignment with this sectoral strength.

The stock has sustained its momentum after breaking out of a broader base near its long-term weekly moving average, reflecting a stable underlying structure.

"The recent price action suggests the formation of a buying pivot near the 20-day EMA, offering a fresh entry opportunity for traders who may have missed the earlier breakout," said Mishra.

"Backed by the steady performance of the pharma space and the stock’s firm price behaviour, the overall outlook remains constructive. Long positions may be considered at the defined levels, with disciplined risk management," Mishra said.

UPL | Buy | Target price: ₹810 | Stop loss: ₹730

Mishra said UPL has been a consistent outperformer, maintaining its upward bias within a rising channel since the beginning of the year.

After a strong two-month rally, it is now undergoing a healthy consolidation phase near its role-reversal support, trading within a narrowing range.

This price behaviour has led to the development of a potential pennant pattern, and the stock is now on the verge of a breakout from this structure.

"A decisive breakout could trigger a resumption of the primary uptrend and potentially drive the stock to new record highs. Given this technical setup, further upside is anticipated. Investors may continue to accumulate in expectation of a sustained upward move," said Mishra.

Bandhan Bank | Sell futures | Target price: ₹138 | Stop loss: ₹151

Mishra pointed out that Bandhan Bank remains in a pronounced downtrend, marked by a persistent lower-high, lower-low formation and continued weakness below the 100-week EMA.

After a brief consolidation around its previous neckline, the stock has confirmed a fresh breakdown, reinforcing the prevailing bearish momentum.

The price structure indicates that every minor consolidation or pullback is attracting renewed selling pressure.

"With the bias firmly negative, the downtrend is likely to extend in the coming sessions. Traders looking for shorting opportunities may consider Bandhan Bank futures at the recommended levels," said Mishra.

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Disclaimer: This story is for educational purposes only. 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.