Religare Broking has identified CDSL, Divi's Laboratories, and UltraTech Cement as stocks showing potential for continued growth despite market volatility. The firm suggests investors consider a buy-on-dips strategy for these companies, focusing on their positive price trends and recent technical breakouts in the current market environment.
As the Indian stock market experiences a phase of consolidation, market analysts are increasingly focusing on stock-specific opportunities rather than broad market trends. Ajit Mishra of Religare Broking has highlighted three companies—Central Depository Services (India) Limited (CDSL), Divi's Laboratories Limited, and UltraTech Cement Limited—as notable picks for investors looking to accumulate quality stocks during minor price corrections.
Central Depository Services (India) Limited, which plays a critical role in the Indian capital market by maintaining electronic records of securities, is currently displaying a symmetrical triangle pattern. From an investor perspective, this technical structure is often viewed as a consolidation phase before a potential trend continuation. The company has benefited from the long-term increase in demat account openings in India, which serves as a core driver for its transaction-based revenue. Investors often monitor the company’s operating margins, which are typically high due to the nature of the depository business model, as a key indicator of its financial health.
Divi's Laboratories has also drawn attention following its breakout from a prolonged consolidation period. As a major player in the active pharmaceutical ingredients (API) and custom synthesis space, Divi's often sees its performance linked to global pharmaceutical demand and supply chain dynamics. The stock has recently reclaimed its record highs, a move supported by increased trading volume, which suggests higher institutional interest. For investors, the long-term monitorable for Divi's remains its ability to maintain margins amidst competitive pricing pressures in the global generic drug market.
UltraTech Cement, India's largest cement manufacturer, is also showing signs of a potential trend reversal after a period of correction. The company’s recent performance in moving past its 200-day moving average is a technical indicator often used to suggest a shift toward positive momentum. Being a leader in the cement sector, UltraTech’s performance is closely tied to domestic infrastructure spending and real estate demand. While the company maintains a robust market share, investors typically track the impact of raw material costs, such as pet coke and coal prices, on its profitability.
It is important for investors to note that while these stocks have been identified by brokerage research for their technical setups, the actual performance of these companies remains subject to broader economic factors. For CDSL, the primary monitorable is the sustained growth of new investor participation in the market. For Divi's, the focus remains on global demand for pharmaceutical ingredients, and for UltraTech, the speed of infrastructure project execution and cement pricing trends will be critical factors in the coming quarters.