Top stocks to buy (AI image)
Stock market recommendations: According to Bajaj Broking Research, Zydus Lifesciences and National Aluminium are the top stock picks for today. Here’s its view on Nifty, Bank Nifty and the top stock picks for March 21, 2025:
Index View: NIFTY
Nifty despite ongoing global volatility maintained a positive bias and on expected lines managed to hold above the support area of 22,300 and tested our immediate resistance area of 23,000-23,200. Concerns over trade tensions and fluctuating US policies are creating a challenging environment for traders and investors, which will continue to keep the equity market volatile.
Going ahead, we expect the index to gradually move higher towards the 23,500 levels, which aligns with the 200-day moving average. However, after a 1,200-point rally over the past 12 sessions, the daily stochastic indicator is now in overbought territory. As a result, some corrective consolidation around the 23,200-23,250 levels is possible. We believe that any pullback from current levels should be seen as a buying opportunity, as we expect the Nifty to stay above the support zone of 22,400-22,500. Focus should be on accumulating quality stocks (backed by strong earnings) in a staggered manner from a medium-term perspective.
Our constructive bias is validated by following observations:
- The market breadth has shown improvement, with the percentage of stocks above the 200-day SMA in the Nifty 500 rising from 10% to 16% over the past two weeks.
- The recent pullback in US 10-year yields, the Dollar Index, and Brent crude prices is beneficial for emerging markets. This shift is expected to ease inflationary pressures, which have been a concern, and provide a more favorable economic environment. Additionally, the reduction in these key factors is likely to enhance investor sentiment, boosting confidence in emerging market assets and potentially driving positive market movements in the near future.
NIFTY BANK
Bank Nifty in the last seven sessions witnessed a strong up move of more than 2000 points from the key support area of 48,000-47,700.
The index in the last 10 weeks has been consolidating in the broad range of 47,700-50,600. Buying demand has recently emerged from the lower band of the range and we expect the index to head towards the upper band of the range placed at 50,600. We believe a breakout above the upper band will signal a major reversal of corrective trend and can open upside towards 51,500-52,000 levels in the coming weeks.
Stock Recommendations:
Zydus Lifesciences
Buy in the range of Rs 900-922
| Stoploss | Return | Target | Time Period |
| Rs 847 | 12% | Rs 1024 | 1 Month |
- The stock after the sharp correction is forming a base around the long term 100 week EMA thus provides a fresh entry opportunity with a favorable risk-reward set up.
- We expect the stock to head towards 1024 levels in the coming month being the confluence of the identical high of Jan & Feb 2025 and 38.2% retracement of the entire decline (1324-855).
- Weekly stochastic has recently generated a buy signal thus validates positive bias in the stock.
National Aluminium
Buy in the range of Rs 187-191
| Target | Stoploss | Return | Time Period |
| Rs 210 | Rs 179 | 11% | 1 Month |
- The share price is seen consolidating in a range around the 52 weeks EMA thus forming a base after recent sharp decline.
- The stock has already taken 8 sessions to retrace just 50% of the previous 4 sessions up move a shallow retracement signals a higher base formation
- We expect the stock to head towards 210 levels in the coming month being the 50% retracement of the entire decline (263-174)
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
