F&O strategy: Cipla, TVS Motor, Sun TV among top picks by Religare Broking | News on Markets
F&O strategy: Cipla, TVS Motor, Sun TV among top picks by Religare Broking | News on Markets
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Nifty: CMP: 22,620.35
Markets saw a recovery, gaining over 3 per cent and taking a breather after a sharp plunge. Although the tone was subdued initially, a recovery in heavyweight stocks helped the Nifty index gradually inch higher as the day progressed. It eventually settled near the day high at 22,620.30.
Metal, auto, banking, and FMCG sectors were the top performers. Broader indices also regained some lost ground, each rising around 4 per cent.
With the major event behind us, we expect volatility to gradually subside. The rebound in the index is encouraging, but sustaining above the 22,600 zone is crucial for a move towards 23,000.
Conversely, the 21,800-22,000 range should provide support in case of profit-taking. Meanwhile, we reiterate our preference for defensive sectors such as FMCG, IT, and pharma, and recommend being selective in others.
Stocks Recommendations
CIPLA LIMITED| LTP: Rs 1487.50 | Buy |Target: Rs 1580 | Stop-loss: Rs 1445
Defensives are seeing strong activity, with pharma also performing well. Cipla, in particular, has achieved a fresh breakout from its consolidation range, reaching a new high with a significant increase in volume.
Given the price action and overall strength in the sector, we anticipate the bullish trend to continue.
TVS MOTOR COMPANY LIMITED |LTP: Rs 2337.75 |Buy |Target: Rs 2490 |Stop-loss: Rs 2260
The auto pack is also showing resilience and TVS Motors is trading in sync with the trend. It has witnessed a fresh breakout from a consolidation range, after spending nearly three months.
The chart pattern combined with buoyancy in the sector is pointing towards higher levels.
SUN TV NETWORK LIMITED |LTP: Rs 740.55 |Buy |Target: Rs 790| Stop-loss: Rs 715
The stock has been in an uptrend for the past year and has recently achieved a fresh breakout from a bullish price pattern with strong volumes.
(Disclaimer: Ajit Mishra is SVP of research at Religare Broking Ltd. Views expressed are personal.)
First Published: Jun 06 2024 | 6:34 AM IST
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