Buy UBL, Oberoi Realty shares; sell Dr Reddy's stock, says Centrum Broking

Indian benchmark indices continued to move higher after the expected US Federal Reserve rate cut. However, broader markets experienced sharp profit booking amid rich valuations. BSE Sensex rose 236.57 points or 0.29 per cent, to end the session at 83,184.80. NSE's Nifty50 gained 38.25 points, or 0.15 per cent, to close at 25,415.80 for the day.

Some buzzing stocks including Oberoi Realty Ltd, United Breweries Ltd (UBL) and Dr Reddys Laboratories Ltd are likely to remain under the spotlight of traders for the session today. Here is what Nilesh Jain, Head Technical and Derivatives Research, (Equity Research), Centrum Broking has to say on these stocks ahead of Friday's trading session:

United Breweries | Buy | Target Price: Rs 2,250 | Stop Loss: Rs 2,050

UBL has given a price and volume breakout on the daily chart. It is trading well above its short term and long term moving averages. It also witnessed a build-up on the long side. Based on the above rationale, we expect the stock to move towards Rs 2,250 and immediate support is at Rs 2,050 levels

Oberoi Realty | Buy | Target Price: Rs 1,940 | Stop Loss: Rs 1,790

Oberoi Realty broke out from a symmetrical triangle pattern on the daily chart. The momentum indicators and oscillators are in a buy mode, indicating a positive momentum to continue. The structure looks positive for Rs 1,940 and support is at Rs 1,790.

Dr Reddy's Laboratories | Sell | Target Price: Rs 6,250 | Stop Loss: Rs 6,620

Dr Reddy's Labs is in a downtrend and witnessing a constant supply at the higher levels. It also witnessed a short build-up, indicating weak positioning in the counter. The overall structure looks weak for Rs 6,250 levels and resistance is placed at Rs 6,620 levels.