2 top stock recommendations by Rajesh Bhosale

After three largely subdued weeks, Indian equity markets are showing signs of renewed strength, with benchmark indices holding above key technical levels. The Nifty continues to trade well above the 26,000 mark and is sustaining above its 20-day moving average, lending support to overall sentiment. While Bank Nifty has underperformed on the day, it has managed to hold above the 59,200 level, keeping broader market confidence intact. On ET Now, the discussion focused on whether the recent rally has the strength to sustain after a period of consolidation.

Responding to the query, Rajesh Bhosale from Angel One noted that markets had been range-bound for most of the past few weeks. He said that since mid-November, the Nifty had been in a consolidation phase, with intraday charts showing a pattern of lower tops and lower bottoms, forming a falling channel. However, a bullish breakout on Friday marked a shift in momentum, which has carried forward into the current session. According to him, the Nifty is now poised to retest its all-time highs, with levels of 26,250–26,300 seen as the next potential target zone. He added that any dip should be viewed as a buying opportunity, with strong support placed in the 26,100–26,000 range.

Bhosale also highlighted that the banking space continues to remain in a consolidation mode, even as other sectors such as IT, auto and defence are showing better traction. He pointed out that Bank Nifty needs to decisively cross the 60,000 level to generate fresh momentum. Until then, it may continue to lag, but the overall market bias remains positive, with declines offering opportunities to accumulate quality stocks.

As markets remained positive in the first half of the session, attention also turned to stock-specific opportunities. Bhosale said the auto sector is looking encouraging, with Tata Motors Passenger Vehicle emerging as a key pick. He noted that the stock had not participated in the recent rally, but a morning star bullish pattern, supported by strong volumes, emerged on Friday.

The follow-through move seen in the current session, along with prices moving above the 20-day exponential moving average after a long period, strengthens the bullish case. He said the stock is trading around 360–361 and can be bought with a stop loss of 350 for a near-term target of 380.

In the metals space, which has been a major driver of the market in recent weeks, Bhosale remained constructive on Hindalco. He observed that the stock has crossed its October swing high and is displaying a bullish pattern on the daily charts. With the metal pack showing sustained strength, he said Hindalco continues to look attractive, with a stop loss placed at 848 and a near-term upside target of around 905.