Nifty ends lower; Religare Broking recommends 3 stocks to 'Buy' this week

Domestic equity market slipped into negative territory on Tuesday after opening firm on positive cues around the GST Council meeting. Selling pressure in banking and select heavyweights dragged indices lower on the weekly expiry day, in line with expectations of consolidation. Analysts at Religare Broking highlighted continued weakness in the banking index as a concern, though relative strength in FMCG, auto and consumer durables sectors provided support. Select PSU themes like defence and railways also showed early signs of reversal, with experts suggesting a stock-specific approach.

Nifty50 ended at 24,579.60, while sub-index Nifty Bank closed at 53,661.00. According to the domestic brokerage, Nifty Bank has been hovering around its long-term 200 EMA near the 53,600 mark for the past three sessions. A decisive break below this level could trigger a further slide towards 52,700–52,500, while resistance lies at 54,400–54,900.

Amid this backdrop, Religare has identified 3 weekly 'Buy' recommendations:

1) Exide Industries Ltd (LTP: Rs 416.20)

Religare has given a 'Buy' call on Exide Industries with a target price of Rs 444 and a stop-loss at Rs 400. The brokerage noted that the stock has broken out of a prolonged sideways consolidation and is trending within an ascending channel. Supported by key moving averages (21, 50 and 100 DEMA) and forming consistent higher highs and higher lows, the stock shows sustained upward momentum.

2) Godrej Consumer Products Ltd (LTP: Rs 1,283.80)

The brokerage has recommended a 'Buy' on Godrej Consumer with a target price of Rs 1,365 and a stop-loss of Rs 1,240. The stock recently closed above a descending trendline and is trading above the 21, 50 and 100-day EMAs. Rising volumes further reinforce the bullish breakout, Religare said.

3) Hindalco Industries Ltd (LTP: Rs 720.95)

Religare's third weekly pick is Hindalco, with a buy rating, a target price of Rs 775 and a stop-loss at Rs 695. The stock has sustained a higher high–higher low structure and recently posted a breakout to a 10-month high on strong volumes. It is also trading above key moving averages, signalling strength and investor accumulation.