Religare picks Biocon, Mahindra and United Spirits as Indian equities slide
As Indian equities extend a four-day losing streak on macroeconomic pressures, Religare Broking is urging investors to adopt a stock-specific strategy and has highlighted three technical breakouts for short-term accumulation.
The Indian equity market suffered its fourth consecutive session of declines on Thursday, pressured by climbing crude oil costs and ongoing geopolitical tensions. Ajit Mishra, senior vice president of research at Religare Broking, noted that the benchmark index has retested the bottom of its 23,800 to 24,400 consolidation band.
A definitive drop below this threshold could push the index toward 23,600, aligning with rising trendline support. Conversely, any market rebound is likely to face immediate resistance between 24,000 and 24,150.
Navigating this environment requires a targeted approach rather than broad market bets. "Given the mixed earnings outlook, elevated geopolitical risks, and persistent volatility, we continue to advocate a stock-specific approach while maintaining disciplined risk and position management," Mishra stated.
For the next one to two weeks, Mishra identified Biocon as a primary accumulation target. The pharmaceutical stock has formed a strong base above the neckline of its previous breakout and remains comfortably above key weekly moving averages.
"This phase of healthy consolidation is likely to pave the way for a resumption of the broader uptrend," he explained. He added that buying momentum should persist provided the shares hold above the ₹415 to ₹420 support zone.
Mahindra and Mahindra was also highlighted due to strengthening momentum within the auto sector. The automaker's shares have broken out of a prolonged consolidation range on increased trading volumes and reclaimed a vital long-term moving average.
"The stock's resilience amid broader market volatility, coupled with improving sectoral sentiment, further strengthens the case for continued upside," Mishra observed. He suggested that the current technical setup offers a favourable entry point for investors.
Finally, United Spirits presented a positive technical shift after rebounding strongly from its 200-week exponential moving average. The liquor manufacturer successfully broke above a falling trendline and has since sustained its position above crucial weekly moving averages.
"It has also developed a strong buying pivot around these support levels, indicating the potential for the prevailing uptrend to continue," Mishra noted. He advised accumulating the stock given its strengthening chart structure and supportive indicators.
