Which stocks could outperform if market sentiment improves?

Traders are keeping an eye on stocks across sectors as technical conditions and improving earnings momentum continue to support market sentiment. Stocks like Aditya Birla Capital, Aurobindo Pharma, BSE, BPCL, Bharat Electronics and UPL are showing signs of strength, with analysts noting fresh breakouts, higher highs and open interest additions in the November range.

ADITYA BIRLA CAPITAL

CMP (Rs): 324 Change in open interest in November series: 3.55% Price change in November series: 3.8%

Analysts said the stock is showing technical strength after the finance company reported a 36% increase in earnings and a 12% increase in operating revenue compared to the previous quarter. “The stock has witnessed a breakout in volumes and has been showing a pattern of higher high and higher low for the past three weeks,” said Sudeep Shah, head of technical and derivatives research at SBI Securities. Shah said until Rs 313 holds, the shares could continue their advance towards Rs 338-343 levels.

AUROBINDO PHARMA
CMP (Rs): 1,144 Change in open interest in November series: 0.53% Price change in November series: 4%

Aurobindo Pharma shares saw a rise in open interest and a rise in prices on Friday, indicating the addition of long positions. “The stock has been trading in a congested zone (Rs 1,075-1,150 zone) for the past few weeks,” said Vipin Kumar, assistant vice-president of derivatives and technical research at Globe Capital Market. “On Friday, it broke through the mentioned consolidation margin at the higher end with a noticeable increase in volumes.” Kumar suggests buying his November futures in the range of ‘1,140-1,155’ as he expects a potential rise to levels of Rs 1,250 until it remains above Rs 1,090.BSE
CMP (Rs) : 2,480 Open interest change in November series: 7.53% Price change in November series: 1.53%

Ajit Mishra, senior vice-president of research at Religare Broking, said the technical setup suggests the potential for further recovery and a possible breakout in the near term. “BSE has been trading in a consolidation phase for the past two weeks while remaining firmly above its short-term moving average support zone,” Mishra said. “During the last trading session, the stock rebounded sharply from the medium-term support of the 100-DEMA, accompanied by a noticeable increase in open interest – indicating strength and renewed buying interest during dips.” He suggests traders buy it at a price target of Rs 2,790 with a stop loss of Rs 2,320.

BHARAT PETROLEUM CORPORATION
(BPCL) CMP (Rs): 356 Change in open interest in November series: 1% Price change in November series: 3.9%

The stock has shown technical strength amid a 169% increase in earnings in the September quarter compared to a year ago, analysts said. “The stock has seen a symmetrical triangle break with volumes on the weekly charts and closed at new lifetime highs from the close,” Shah said. “It is also trading above all of its short- and medium-term moving averages, reinforcing the strength of the current uptrend.” Shah said until the stock remains above Rs 343, it could continue its rise towards Rs 372-378 levels.

BHARAT ELECTRONICS
CMP (Rs): 426 Change in open interest in November series: -5% Price change in November series: 4.31%

The company’s second-quarter earnings exceeded analyst expectations, laying a foundation for further gains. “The stock is trading above its long-term and short-term averages, with higher highs and higher lows,” Kumar said. “On Friday, the price rose with an exceptional increase in volumes, despite the short covering.” Kumar suggests that traders create long positions and buy their November futures in the range of Rs 420-430 for a target of Rs 460 with a stop loss of Rs 409.

UPL
CMP (Rs): 718 Change in open interest in November series: 5.39% Price change in November series: -0.25%

Mishra said the price structure and momentum in the stock indicate growing investor confidence, supported by renewed buying interest. “UPL has witnessed a strong rebound after successfully retesting the neckline of the corrective phase, accompanied by a significant increase in volumes. This move confirms a multi-year breakout, indicating the potential for a sustained uptrend,” Mishra said. Traders can view any short-term dip or consolidation phase as an opportunity to accumulate, anticipating a sustained upward move towards record highs in the coming sessions, for a target of Rs 780, with a stop loss of Rs 688.