Biocon, Vedanta, UBL among stocks to invest in July: Religare broking

Religare Broking has identified four stocks in the Nifty 50 July series that are considered promising investments: Vedanta, Biocon, United Breweries Ltd (UBL), and Indus Tower. Here's a breakdown of why these stocks are expected to perform well:

Vedanta (CMP: ₹454)

Performance: The stock didn't show significant movement in the June series but had a notable increase in Open Interest (OI) by more than 38%.

Prospect: With a high rollover rate of 97% from the previous 93%, these are likely to be long positions. Religare Broking anticipates a rise in the stock's value with a recommended stop at ₹415.

Biocon (CMP: ₹351)

Performance: The stock saw an 11% price increase and a 19% rise in OI during the June series, indicating long positions.

Prospect: The rolls were at 98%, up from 95% in the last series. With the pharma sector expected to perform well, Biocon is seen as a good long-term investment with a suggested stop at ₹320.

Indus Tower (CMP: ₹375)

Performance: The stock increased by 6% and had a substantial 51% increase in OI in June.

Prospect: Despite fewer rollovers, the stock is expected to reach new highs due to the accumulation of long positions and decent cash-based buying. A stop at ₹330 is advised.

United Breweries Ltd (UBL) (CMP: ₹1,990)

Performance: The stock gained nearly 8% in price with a 25% increase in OI, and these positions have been rolled into the new series.

Prospect: With a support level at ₹1,940-1,960, the stock is expected to do well in July, with a suggested stop at ₹1,900.

Market Outlook for July

Nifty 50 and Sensex Performance: Both indices saw significant gains in June, with Nifty 50 rising 6.6% and Sensex climbing 6.9%. Despite some profit-taking towards the end of the month, the overall trend remains positive.

Sectoral Highlights: The realty sector saw the highest rollover, while the media sector had the lowest. The FMCG and pharma sectors are expected to outperform in July.

Foreign Institutional Investors: FIIs have a long ratio of 82% in index futures, indicating a bullish sentiment for the July series.

Technical Insights

Nifty 50: Expected to trade in a range of 23,700-24,400, with strong resistance around 24,400-24,500.

Bank Nifty: Likely to be in the 51,500-54,000 range, with resistance at a ratio of 2.21 and support at 2.14 against Nifty.

Recommendations

Religare Broking suggests maintaining a "buy on dips" strategy, focusing on careful stock selection across key sectors like IT, FMCG, and banking to capitalize on the ongoing market uptrend.

Disclaimer: These recommendations are for informational purposes and should not be construed as financial advice. Investors are encouraged to consult with certified financial experts before making investment decisions, as market conditions can be volatile and individual circumstances vary.