Angel One's Rajesh Bhosale Recommends Tata Steel and HPCL Amid Market Consolidation
Rajesh Bhosale from Angel One recommends Tata Steel and HPCL as top stock picks amid market consolidation during year-end trading sessions. He suggests Tata Steel with a target of ₹181 and stop loss at ₹169 following a flag pattern breakout, while HPCL targets ₹489 with stop loss at ₹464 based on 20 EMA support. With Nifty below 26,000 and markets in "holiday mood," Bhosale advocates a stock-specific approach as indices remain range-bound.
*this image is generated using AI for illustrative purposes only.
Market expert Rajesh Bhosale from Angel One has identified selective stock opportunities as Dalal Street enters a subdued phase during the final trading sessions. With benchmark indices struggling for momentum and slipping below key psychological levels, the focus has shifted to individual stock picks rather than broad-based market moves.
Market Outlook and Key Levels
Speaking to ET Now, Bhosale highlighted the current market sentiment, noting that trading activity suggests a clear "holiday mood" with limited action on the index front. The Nifty has dipped below the 26,000 mark on an intraday basis, reflecting the lack of strong directional cues in the market.
| Index | Support Level | Resistance Level | Strategy |
|---|---|---|---|
| Nifty | 25,900 | 26,100-26,200 | Buy on dip, book profits at higher levels |
| Bank Nifty | 58,500 | 59,500 | Consolidation expected |
Bhosale explained that ₹25,900 appears to be the immediate support for the Nifty, representing a golden retracement level from the strong move that occurred two weeks back from ₹25,700 levels. However, until the index crosses the ₹26,100 to ₹26,200 range, markets are likely to consolidate further.
Banking Sector Consolidation
The consolidation theme extends to the banking space, with Bank Nifty remaining largely flat through December. The ₹58,500 level has been acting as strong support for the entire month, while ₹59,500 serves as the crucial resistance level. Bhosale's bias remains focused on stock-specific opportunities with a buy-on-dip approach for indices.
Top Stock Recommendations
Despite the muted broader market performance, Bhosale identified opportunities in specific sectors, particularly highlighting the metals space for its continued outperformance.
Tata Steel - Flag Pattern Breakout
Tata Steel emerged as Bhosale's primary recommendation from the metals sector, showing technical strength through a fresh flag pattern breakout.
| Parameter | Details |
|---|---|
| Stock | Tata Steel |
| Entry Strategy | Buy on flag pattern breakout |
| Stop Loss | ₹169.00 |
| Target | ₹181.00 |
| Rationale | Fresh breakout toward recent highs |
HPCL - Uptrend Continuation
HPCL represents Bhosale's second pick, demonstrating resilience despite the broader market's sideways movement. The stock has shown consistent strength with every dip toward the 20 EMA being bought into.
| Parameter | Details |
|---|---|
| Stock | HPCL |
| Entry Strategy | Buy above Friday's high |
| Stop Loss | ₹464.00 |
| Target | ₹489.00 |
| Technical Support | 20 EMA acting as support |
Bhosale noted that HPCL took support on the 20 EMA on Friday, and the stock has since crossed above Friday's high, indicating continued upward momentum.
Strategic Approach for Year-End
With indices expected to remain range-bound during the final trading sessions, Bhosale emphasizes the importance of patience and selectivity. The expert suggests that traders and investors may find better results by focusing on stock-specific opportunities rather than chasing broad-based moves, particularly as the metals basket continues to outshine other sectors in the current market environment.
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