LIC Housing, Hero MotoCorp, Marico may see short-term upside: Religare Broking

Religare Broking has released its weekly stock recommendations, suggesting investors be selective in the current uncertain market. The domestic brokerage advises buying shares of LIC Housing Finance Ltd, Hero MotoCorp Ltd and Marico Ltd for near-term gains, backed by strong technical charts and favorable sector trends.

Top weekly stock picks by Religare Broking:

1. LIC Housing (Last trading price: Rs 619)

Religare recommends a 'Buy' on LIC Housing with a target price of Rs 665 and a stop-loss at Rs 597. The stock has been consolidating above long-term moving averages for nearly three months, forming a solid technical base. "With renewed strength in financial stocks, LIC Housing appears poised for an upward move after a phase of underperformance," it said.

2. Hero MotoCorp (LTP: Rs 4,454)

Hero MotoCorp is also rated a 'Buy' with a target of Rs 4770 and stop-loss at Rs 4300. The stock has formed a bullish inverted head and shoulders pattern, a classic reversal formation, indicating the end of its corrective phase. Rising volumes and improving sentiment in rate-sensitive sectors like auto support the bullish view.

3. Marico (LTP: Rs 740.20)

Religare sees further upside in Marico, setting a target of Rs 795 with a stop-loss at Rs 710. The stock is in a sustained uptrend and currently forming a bullish elevated base pattern near its all-time highs. Strong volumes reinforce the positive price structure.

Nifty and Bank Nifty Outlook:

Following four consecutive sessions of decline, easing inflation data lifted market sentiment, especially in rate-sensitive sectors. However, weakness in the IT sector, post HCL Tech's earnings, capped gains.

Religare maintains a cautious stance on the Nifty index, noting resistance at the 20-day exponential moving average (EMA) around 25,250. "Participants should adopt a selective approach as the index remains rangebound with mixed cues," it stated.

Meanwhile, the Bank Nifty is holding relatively stronger, trading above its 20 EMA. Support is seen at the 56,500–56,000 zone, while resistance lies near 57,200–57,400. Sustaining above the lower band is key to preserving bullish sentiment in the banking space.