Stocks to buy and sell: Ajit Mishra of Religare Broking picks 3 shares

Stocks to buy and sell for the short term: The Nifty suffered losses of about 1 per cent for the second consecutive session on Thursday, August 28, ending the August series with a loss of 1 per cent.

After a weak opening, the Nifty rebounded swiftly in the initial hours, but sustained pressure from the heavyweights across sectors pushed the index lower as the session progressed. Eventually, the index closed at 24,500.90, down 0.85 per cent.

Ajit Mishra, SVP of research at Religare Broking, pointed out that the sentimental dent of additional 25 per cent US tariff combined with weakness in heavyweights from key sectors like banking is pushing the markets lower with every passing day.

In the absence of any major domestic event, global cues will likely continue dictating the trend.

Mishra underscored that the Nifty has breached its medium-term moving average, i.e. 100 DEMA, around 24,600. The index now has next support around the 24,250-24,350 zone, which coincides with the previous swing low and the long-term moving average, i.e. 200 DEMA.

"In case of rebound, the earlier support, i.e. 24,650-24,800 zone, would act as a hurdle. Traders should align their positions accordingly in the index and maintain extra caution in stock selection," said Mishra.

Mishra pointed out that domestic-driven segments like auto are showing relative resilience amid the broader market correction, and Bajaj Auto is aligning with this sectoral strength.

After a prolonged corrective phase, the stock is attempting to carve out a reversal formation within a wide consolidation band of nearly ₹7,000-9,000 zone.

The recent pause around the neckline area is offering a fresh buying opportunity. The price structure displays inherent strength, and sharp upward bursts accompanied by notable volume expansion are followed by mild consolidations on lighter volumes — a classic sign of accumulation.

Moreover, the stock has reclaimed both its short- and long-term moving averages, adding further weight to the bullish outlook.

The banking index has been a notable underperformer in recent weeks, and IndusInd Bank continues to lag within the space.

The stock has been trapped in a persistent downtrend, marked by a clear lower-top, lower-bottom formation. Every rebound presents a fresh shorting opportunity.

Prices are trading significantly below both the short- and long-term moving averages, reflecting sustained supply pressure.

Recently, the stock breached a crucial support zone on rising volumes, confirming a continuation of the downtrend after a multi-month consolidation.

"Given this weak setup, traders may look to initiate short positions in stock futures on minor pullbacks, with tight stop loss placement to manage risk," said Mishra.

FMCG and consumer discretionary names continue to show resilience, and Godrej Consumer Products remains structurally firm within this theme.

The stock rallied strongly in the past and, after peaking near ₹1,500, underwent a healthy retracement towards its 200-week EMA zone near ₹1,080, where it attracted renewed buying interest.

This recovery has led to a consolidation phase, with prices oscillating between ₹1,150– ₹1,300 over the past several weeks, forming a rectangular base on the weekly timeframe.

The fact that the long-term EMA continues to slope upward reaffirms the broader bullish undertone.

"A breakout from this tight range would likely resume the prior uptrend and unlock a fresh leg of upside, while the 200 WEMA zone remains a key reference support for positional traders," said Mishra.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, 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.

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