Religare Broking has issued bullish notes for Indian Hotels and Nuvama Wealth, highlighting technical strength amid market jitters following the RBI's repo rate hike to 5.5%. While the brokerage sees upside in these picks, it flags the metal sector, particularly NALCO, as a laggard.
The Indian stock market is facing a period of heightened caution as benchmark indices recently retreated, with the Nifty closing at 22,603 and the Sensex settling at 72,638. This selling pressure comes as investors react to the Reserve Bank of India’s decision to increase the repo rate to 5.5%, signaling a move toward tighter monetary policy to manage inflation. Amid this uncertain environment, brokerage firm Religare Broking has suggested that investors adopt a highly selective approach, focusing on individual stock strength rather than betting on the broader market.
Technical View on Indian Hotels and Nuvama
Religare Broking’s latest analysis identifies Indian Hotels Company Limited (IHCL) as a stock showing potential for further gains. The company has successfully reclaimed its 50-day moving average, a level that traders often watch to gauge the medium-term price trend. The report suggests the stock has broken out of a negative trend, with a price target of ₹785. Investors tracking this stock often monitor whether it can maintain its momentum above key support levels during volatile sessions.
Nuvama Wealth Management is also being highlighted for a bullish reversal, following a technical pattern known as a double-bottom. The stock has seen increased trading volumes, which often signals renewed interest from market participants. The brokerage has set a target of ₹1,970 for the stock. However, investors should be aware of company-specific risks, such as the high promoter pledge level of approximately 62.8%. High promoter pledging can be a concern for some investors as it increases the sensitivity of the stock price to broader market movements and potential margin calls.
Weakness in Metal Stocks
In contrast to these bullish views, the brokerage holds a cautious to negative outlook on the metal sector, which has been underperforming due to broader market sentiment and sector-specific weakness. National Aluminium Company Limited (NALCO) has been singled out as a laggard after failing to hold critical support levels. The report suggests that continued selling pressure could keep the stock under stress, with a potential target of ₹308 in the futures segment.
As the RBI’s policy shift and global economic factors continue to influence market sentiment, the key monitorable for investors remains the ability of these stocks to sustain their technical setups. While individual stocks may show signs of strength, the overall market trend is currently being influenced by institutional outflows and interest rate concerns. Investors may want to track how these companies handle upcoming market volatility, rather than relying solely on technical targets.