Stocks to buy and sell on July 4: Bhel, Lupin, Firstsource Solutions
Illustration: Binay Sinha
Handy: 24,286.50
Markets edged higher, gaining over half a percent on favourable cues. Buoyant global markets and strength in major banks led to a strong start, followed by a range-bound movement till the close. The Nifty index eventually closed close to the day’s high of 24,292.45, up 0.7 percent. Most sectors contributed to the gains, with banking, metals and FMCG being the best performers. Broader indices also rose, each gaining nearly a percent.
We remain positive and suggest to continue a buy on dips strategy with 23,800-24,000 zone as a new base for the Nifty index. Favorable global cues and rotational buying in heavyweights are expected to help the Nifty test the 24,500 mark.
Stock recommendations
FIRSTSOURCE SOLUTIONS LIMITED | LTP: 224.16 | Buy | Target: 246 | Stop-loss: 217
FSL has been in a stable uptrend for more than a year and is gaining momentum with an upward movement in the IT pack. It has registered a fresh breakout from the consolidation range with a sharp increase in volumes. On a higher time frame, it is forming a bullish cup and handle price pattern, which further complements the prevailing tone.
LUPIN LIMITED | LTP: 1630.60 | Buy | Target: 1735 | Stop Loss: 1578
Pharma index has recovered from the key support zone and LUPIN offers new buying opportunities with a favorable risk-reward ratio. The stock has managed to hold its key demand zone and has recovered strongly with decent volumes. It has registered a breakout from the descending resistance trend line and has reclaimed its short-term moving average i.e. 20 DEMA. Traders can consider new long positions.
BHARAT HEAVY ELECTRICALS LIMITED | LTP: 311.30 | Buy | Target: 333 | Stop-loss: 300
BHEL has undergone a time correction after retesting closer to its all-time high and trading in a congestion zone. The recent price rally coupled with newfound resilience in certain defence-related stocks suggests the possibility of consolidation ending soon, so traders may consider initiating fresh trades around the current level.
Please note: All stock prices are in Rs.
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Disclaimer: Ajit Mishra is SVP, Research, Religare Broking. The views expressed are his own. He may/may not have positions in the stocks mentioned above.
First print: 04 Jul 2024 | 06:10 am IST