Stock Picks: Sagar Doshi Suggests Chennai Petroleum, LTIMindtree, Zydus Life Shares to Buy in a Muted

Market Today

Introduction: Expert Calls Amid a Sideways Market

With Indian equity markets moving sideways due to global uncertainties and cautious domestic sentiment, investors are seeking direction through selective stock picking. In such an environment, market expert Sagar Doshi has handpicked three promising stocks—Chennai Petroleum, LTIMindtree, and Zydus Life—as potential outperformers.

These picks are grounded in a blend of valuation comfort, sectoral tailwinds, and technical strength. Let’s explore each in detail, understand the underlying thesis, and examine how these companies are positioned for the current market cycle.

Chennai Petroleum Corporation Ltd (CPCL): Crude Play with Momentum

Sector: Energy – Oil Refining

CMP: ₹594.20

Target Price: ₹675–₹700 (medium term)

Stop Loss: ₹555

View: Positional, 4–6 weeks

Why CPCL Now?

Sagar Doshi’s bullish stance on Chennai Petroleum stems from multiple factors, both technical and fundamental. Despite volatile global crude prices, refining margins have remained resilient for Indian refiners. CPCL, a subsidiary of IOCL, stands to benefit from both domestic demand recovery and its strong refining capability.

Key Drivers:

• GRM Resilience: Gross Refining Margins remain healthy due to strong diesel demand and a tight global supply chain.

• IOCL Backing: Being part of the Indian Oil group ensures better access to crude and robust marketing infrastructure.

• Expansion Plans: The upcoming ₹31,580 crore Cauvery Basin refinery project adds long-term value.

• Technicals: The stock recently broke out of a cup-and-handle pattern on the daily chart with strong volumes, suggesting further upside.

Doshi’s Take:

“Chennai Petroleum has established a base around ₹520 and is now entering a new leg of the rally. With refining margins stable and energy prices staying elevated, this midcap energy stock offers a perfect mix of technical breakout and earnings potential,” said Doshi.

LTIMindtree Ltd: Tech Consolidation Play with AI Exposure

Sector: Information Technology

CMP: ₹5,045

Target Price: ₹5,500–₹5,700 (medium to long term)

Stop Loss: ₹4,800

View: Accumulate on dips, 2–3 months

Why LTIMindtree?

In a tech space clouded by global recession worries, LTIMindtree stands apart with its consistent deal wins, strategic investments in AI, and healthy operational metrics. While frontline IT names consolidate, mid-tier IT with niche focus areas are emerging as winners.

Key Drivers:

• AI & Cloud Transition: Strategic investments in generative AI, data analytics, and cloud transformation services are future-proofing revenue.

• Strong Order Book: Q4FY25 reported a 9.2% QoQ rise in deal wins, indicating client confidence.

• Merger Synergies: The LTI-Mindtree merger has already begun showing margin improvements and cost efficiency.

• Technicals: The RSI suggests a mild bullish divergence, and the stock is attempting to reclaim 200-DMA, which, if sustained, could lead to a medium-term rally.

Doshi’s Take:

“LTIMindtree offers high visibility into future earnings due to its AI-focused offerings. It's a midcap IT name that is still under-owned by many institutions, making it a quality bet for accumulation during consolidation,” Doshi explained.

Zydus Lifesciences Ltd: Consistent Pharma Performer with New Pipeline Edge

Sector: Pharmaceuticals

CMP: ₹991.40

Target Price: ₹1,100–₹1,150 (short to medium term)

Stop Loss: ₹945

View: Tactical Buy, 3–5 weeks

Why Zydus Life?

Zydus Lifesciences continues to impress with its robust generics business in the U.S., growing domestic formulations, and a healthy new drug pipeline. With the stock nearing ₹1,000 again, Doshi sees an opportunity for both momentum and long-term positioning.

Key Drivers:

• US Market Traction: The launch of new generics and specialty products is strengthening Zydus’ U.S. portfolio.

• India Business: Strong presence in chronic and wellness segments with steady margin growth.

• R&D Focus: The Saroglitazar molecule and other biosimilars in the pipeline offer valuation rerating potential.

• Technicals: Price action indicates the formation of a bullish ascending triangle, usually a precursor to breakout in trending markets.

Doshi’s Take:

“Zydus has the right combination of earnings consistency and upside triggers. With U.S. FDA inspections behind and approvals lined up, the company is on solid ground to rerate further,” said Doshi.

How These Picks Fit in a Muted Market

The broader market is currently showing signs of indecisiveness. Global macro uncertainty, mixed corporate earnings, and foreign fund outflows have muted broader indices like the Nifty 50 and Sensex. However, this very environment creates fertile ground for stock-specific breakouts.

Doshi’s picks focus on three key themes:

1. Value in Commodities: CPCL is a play on resilient energy margins amid inflation.

2. Technology Repositioning: LTIMindtree targets niche digital transformation trends with cost optimization.

3. Healthcare Innovation: Zydus combines stable generics with specialty pipeline optionality.

By diversifying across energy, IT, and pharma, these stocks offer a balanced approach in an otherwise narrow and uncertain market.

What Should Investors Do Now?

If you are a swing trader, these stocks provide clear technical entry and exit points based on volume-backed patterns and short-term catalysts.

For long-term investors, the fundamental stories of each company remain strong, making them candidates for staggered buying and portfolio allocation.

Doshi recommends allocating small capital tranches first and scaling up if market volatility continues to cool in the coming weeks.

Risk Factors to Monitor

Every stock recommendation comes with associated risks. Here's what to keep an eye on:

• CPCL: Crude price volatility or unplanned refinery shutdowns could affect margin visibility.

• LTIMindtree: Currency fluctuations and client delays in decision-making can compress margins.

• Zydus Life: Regulatory setbacks or delayed approvals from U.S. FDA could dampen near-term sentiment.

Investors should use stop losses as advised and follow company-specific news and global triggers.

Focused Stock Picking Is the Way Forward

In a muted market that lacks broad-based participation, stock picking becomes more critical than ever. Sagar Doshi’s selection of Chennai Petroleum, LTIMindtree, and Zydus Life highlights a clear strategy: diversify across resilient sectors, back technically strong charts, and stick to earnings visibility.

The Indian market may not provide index-wide fireworks right now, but within the noise, there are pockets of value—and these three names exemplify that potential.

Whether you're an intraday trader, a swing position holder, or a long-term investor, today's market demands precision over panic. And for those willing to dig deeper, the opportunities are still abundant.