Indian frontline indices ended the week with 2.3% cuts amid selling pressure in most sectors, primarily in banks, auto and pharma. On Friday too, they ended lower. While the S&P BSE Sensex settled at 77,378.91, down by 241.30 points or 241.30%, the broader Nifty closed at 23,431.50, lower by 95 points or 0.4%.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that he sees the bearish pressure continue and to intensify as the index closed below 23,500 for the first time in several days. “The index remains below the crucial 50 EMA, reaffirming a bearish trend. Furthermore, the RSI remains in a negative crossover, signaling weak momentum. Sentiment stays subdued in the short term, with the potential for a decline toward 23,300 or 23,000. On the upside, resistance is observed at 23,550–23,600,” De said.
Here are 5 stock recommendations for Monday:
Buy LTIMindtree at Rs 6,124.40
Stop Loss: Rs 5,850
Target Price: Rs 6,500-6,700
LTI Mindtree has broken out of a 13-day consolidation, signalling a bullish breakout. The increased volume during the breakout indicates strong buying interest at the current levels. Additionally, the price has closed above the 50-period Double EMA, further confirming the bullish sentiment. The RSI is trending upward, aligning with the positive price action. Based on this technical setup, a long position can be initiated in LTI Mindtree as long as it holds above 5,850, with an upside target of 6,500–6,700.(Kunal Kamble, Sr. Technical Research Analyst at Bonanza)
Sell PNB future at Rs 99.15
Stop Loss: Rs 103
Target Price: Rs 92-90
PNB Futures has broken down from a rising wedge pattern, indicating a continuation of the downtrend. The increased volume during the breakout highlights strong selling interest at the current levels. Additionally, the price is trading below both the Fast 20 EMA and the Slow 50 EMA, further confirming
the bearish trend. The RSI has also broken below a falling trend line, supporting the bearish price action. Based on this technical setup, a short position in PNB January Futures can be initiated with a stop-loss at 103 and a target range of 92–90. To hedge the position, buying a 100 CE option is recommended.
(Kunal Kamble, Sr. Technical Research Analyst at Bonanza)
Buy Uno Minda at Rs 1,098
Target: Rs 1,220
Stop Loss: Rs 1,044
The stock has delivered a consolidation breakout on the daily chart, indicating a rise in optimism around it. Additionally, the stock has been sustaining above the critical moving average. The RSI is in a bullish crossover and trending upward. In the short term, the stock may move toward 1,220, with support on the lower end placed at 1,044.
(Rupak De, Senior Technical Analyst, LKP Securities)
Sell HAL at Rs 4,000
Target: Rs 3,800
Stop Loss: Rs 4,100
The stock has given a breakdown from a consolidation on the daily chart, indicating a rise in bearishness around it. Besides, the stock has been sustaining below a critical moving average. The RSI is in a bearish crossover and falling. In the short term, the stock may move down toward 3,800, with support on the lower end placed at 4,100.
(Rupak De, Senior Technical Analyst, LKP Securities)
Buy IRCTC at Rs 779
Target Price: Rs 850
Stop Loss: Rs 759
The stock has shown initial signs of recovery from the current levels. The recent green candle was accompanied by decent volume, adding to the positive sentiment. The RSI has entered a bullish crossover, and a positive divergence is visible on the daily RSI. In the short term, the stock may move toward 850, with support placed at 759.
(Rupak De, Senior Technical Analyst, LKP Securities)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)