Stock Picks: Sagar Doshi suggests Chennai Petroleum, LTIMindtree, Zydus Life shares to buy in a muted market today

Mint

5 days ago

Stock market today: India's main stock indexes started the day relatively unchanged on Wednesday, as investments in large block transactions and the primary market balanced out the benefits from positive global sentiment.
The Sensex dropped by 200.32 points to reach 81,351.31 in early trading, while the Nifty 50 fell by 61.2 points to settle at 24,765.
Market analysts observed that encouraging signals from the US markets, a weak dollar, and lower gold prices will create a favourable macroeconomic environment for the equity markets today.
The MPC is highly likely to reduce policy rates by 25 basis points during the policy meeting on June 6th. As a result, rate-sensitive sectors will be in focus in the upcoming days.
Sagar Doshi of Nuvama recommends Chennai Petroleum Corporation, LTIMindtree, and Zydus Lifesciences shares to buy today. Here's what Doshi says about the overall market.
For the past 8 trading days, Nifty 50 has been static within a 2% band, however the highs of 25,000 has been constantly providing supply non index longs. Unless a closing above 25,050 is not confirmed, downside swing towards 24,300 / 24,100 remain open on the index.
Nifty 50 has had a nearly 15% run up in the past 6 weeks without a 2% correction. With the price action seen from the start of this week, it is fair for the index to retest 200 DMA support on downside which currently reads below 24,100.
Bank Nifty has broken from its 6 week rising trendline in last week's trading. This puts the index back on track to retest its polarity support of its original 5 year rising trendline. Targets for this breakdown hint for a 1,200-1,500 point breakdown from CMP. Negation for this down move is seen only when the index closes above 55,600.
On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Chennai Petroleum Corporation Ltd, LTIMindtree Ltd, and Zydus Lifesciences Ltd.
After a bullish head and shoulder breakout on daily and weekly chart earlier this month, prices are consolidating after crossing the 200 DMA resistance on shares on Chennai Petroleum Corporation. This consolidation in a range is a typical price behaviour on this stock historically observed before another round of up move. A follow up move of 9-12% is likely to be unfolded post this monthly derivative expiry.
After trading at a 3 year low in April, LTIMindtree share price has been rising within a channel and has gained 25% since its April lows. A typical higher high – higher low formation underlines the bullish set up and inflows on the counter. The stock has widely outperformed its benchmark NIFTY IT index on a YTD basis which is down over 13% while LTIMindtree share price is down 8% in the same period of 2025. A move towards higher range of the bullish channel is likely to unfold for target of 5525.
Zydus Lifesciences share price has closed at a 2 month high, after breaking out from a falling trendline earlier this month which was in place since August 2024. Repeated higher lows have been seen from the start of this month on daily charts, this 2 high note closing on charts is likely to allow further thrust on the stock for a resistance meet at its 200 DMA near 980 odd.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.