India’s headline indices extended their losses to the second session in a row, ending with cuts on Wednesday led by pharma and IT stocks. Nifty remained bearish throughout the day as the index stayed under selling pressure, holding below the 50 EMA throughout the session.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that the RSI continued to display a bearish crossover on both the daily and hourly charts. In addition, a lower-top, lower-bottom formation has developed on the hourly chart, indicating a weakening trend.
"The index is likely to remain a “sell on rise” as long as it stays below 24,850. In the short term, the index may trend downwards towards 24,400, which is expected to act as a crucial support level on a sustained or closing basis. If Nifty sustains below 24,400, it is likely to witness a more serious correction," De said.
Here are 7 stock recommendations for Thursday:
Buy InterGlobe Aviation at Rs 5,893.50 | Upside: 6%
Stop loss: Rs 5,750
Target: Rs 6,100/6,250
IndiGo has broken out of a contracting range pattern formed over the last few weeks, supported by a strong bullish candle and price action above key moving averages. The stock is displaying signs of resumption in momentum toward fresh all-time highs. The stock has cleared its short-term downward sloping resistance trendline, indicating fresh buying interest and continuation of the larger uptrend. ATR is elevated at 122.87, indicating increased price range and scope for momentum-based moves.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
Buy Transrail Lighting at Rs 794.65 | Upside: 9%
Stop loss: Rs 740
Target: Rs 835 / 865
Transrail Lighting Ltd. has delivered a decisive breakout from its recent consolidation range along with a breakaway gap, signaling a fresh bullish leg. The price action is accompanied by a surge in volume, adding confirmation to the breakout. RSI is currently at 63.37, indicating bullish momentum with room for further upside. ADX is reading at 27.49, confirming strength in trend.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
Sell Bajaj Finance August futures at Rs 883-880 | Downside: 2%
Stop Loss: Rs 896
Target: Rs 864
The stock has given a consolidation breakdown on the daily chart, indicating a shift toward weakness. It is trading below its crucial 20-day and 50-day EMAs, reflecting sustained selling pressure. On Wednesday, the stock faced rejection near its 100-day EMA placed at 893, further reinforcing the bearish sentiment. Additionally, RSI remains in a bearish crossover, suggesting weak momentum. Based on these technical signals, the stock is expected to drift lower and test its 200-day EMA placed around the 845 level in the near term.
(Rupak De, Senior Technical Analyst at LKP Securities)
Sell Mazagon Dock August futures at Rs 2,766-2,780 | Downside: 4%
Stop Loss: Rs 2,825
Target: Rs 2,660
The stock witnessed a sharp downward rally on the daily chart after breaking its key support level of 3104, signaling strong bearish momentum. During a pullback, it faced resistance near the 20-day EMA and closed with a bearish engulfing pattern, reinforcing the negative sentiment. These technical indicators suggest the stock may head toward its 200-day EMA. Traders can consider initiating a sell position in the 2760–2780 range with a stoploss at 2825 and a downside target of 2660 for a favorable risk-reward setup.
(Rupak De, Senior Technical Analyst at LKP Securities)
Buy CSB Bank at Rs 434 | Upside: 7%
Stop Loss: Rs 417,
Target: Rs 465
In the recent move, the stock has given a strong closing above its key resistance zone of 420, supported by a bullish RSI crossover, indicating strength in momentum. The major trend remains positive with a structure of higher highs and higher lows on the daily chart and a steady rally visible on the weekly chart. It is also sustaining above its 20-day EMA, reinforcing the bullish sentiment. With a favorable risk-reward setup, the stock can be considered for buying at 434 with a stop loss below 417 and an upside target of 465.
(Rupak De, Senior Technical Analyst at LKP Securities)
Buy Indigo at Rs 5,890 | Upside: 10%
Stop Loss: Rs 5,600
Target: Rs 6,480
INDIGO has formed a classic Flag and Pole pattern on the daily chart, signaling a potential bullish continuation. The stock is currently consolidating just below the breakout zone of Rs 5,900, and a decisive close above this level could lead to a sharp rally toward Rs 6,480. This bullish setup is backed by rising volumes, indicating increasing buying interest. Furthermore, the stock is taking support near the 20-day and 50-day EMAs, reinforcing the strength of the ongoing trend.
From a technical indicator perspective, the Relative Strength Index (RSI) is turning upward and currently stands at 56.51, suggesting growing bullish momentum. The overall structure remains positive, and minor dips toward support levels may offer favorable entry opportunities for traders.
Going forward, immediate support is placed at Rs 5,800.
(Mandar Bhojane, Equity Research Analyst, Choice Equity Broking)
Buy Metropolis Healthcare at Rs 2,056 | Upside: 11%
Stop Loss: Rs 1,945
Target: Rs 2,280
METROPOLIS has confirmed a breakout from a Cup and Handle pattern on the weekly chart, a classic bullish continuation setup. This breakout, supported by strong volumes, signals a positive shift in momentum and enhances the medium-term bullish outlook. Technically, the stock is trading above all major EMAs (20, 50, 100, and 200), indicating strong trend alignment. The structure remains favorable, and any pullback toward support levels can be considered a buying opportunity. Rs 2,000 is a crucial support, and holding above it will be important for sustaining the uptrend.
(Mandar Bhojane, Equity Research Analyst, Choice Equity Broking)
Buy Astra Microwave at Rs 992 | Upside: 11%
Stop Loss: Rs 940
Target: Rs 1,100
Astra Microwave Products is currently trading at Rs 992 and has recently reversed from a key support level, indicating renewed bullish interest. The stock is on the verge of a breakout from a falling trendline, with rising volumes supporting the strength of this move. A decisive close above Rs 995 would confirm the breakout and could trigger an upward rally toward the Rs 1,100 zone in the near term.
The technical structure is constructive, as the stock is trading above its 20, 100, and 200-day EMAs, reflecting a solid underlying trend. The RSI is at 49.47 and trending upward, suggesting strengthening momentum and growing buying conviction. From a risk management perspective, Rs 970 acts as immediate support, offering a good buy-on-dips opportunity.
(Mandar Bhojane, Equity Research Analyst, Choice Equity Broking)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that the RSI continued to display a bearish crossover on both the daily and hourly charts. In addition, a lower-top, lower-bottom formation has developed on the hourly chart, indicating a weakening trend.
"The index is likely to remain a “sell on rise” as long as it stays below 24,850. In the short term, the index may trend downwards towards 24,400, which is expected to act as a crucial support level on a sustained or closing basis. If Nifty sustains below 24,400, it is likely to witness a more serious correction," De said.
Here are 7 stock recommendations for Thursday:
Buy InterGlobe Aviation at Rs 5,893.50 | Upside: 6%
Stop loss: Rs 5,750
Target: Rs 6,100/6,250
IndiGo has broken out of a contracting range pattern formed over the last few weeks, supported by a strong bullish candle and price action above key moving averages. The stock is displaying signs of resumption in momentum toward fresh all-time highs. The stock has cleared its short-term downward sloping resistance trendline, indicating fresh buying interest and continuation of the larger uptrend. ATR is elevated at 122.87, indicating increased price range and scope for momentum-based moves.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
Buy Transrail Lighting at Rs 794.65 | Upside: 9%
Stop loss: Rs 740
Target: Rs 835 / 865
Transrail Lighting Ltd. has delivered a decisive breakout from its recent consolidation range along with a breakaway gap, signaling a fresh bullish leg. The price action is accompanied by a surge in volume, adding confirmation to the breakout. RSI is currently at 63.37, indicating bullish momentum with room for further upside. ADX is reading at 27.49, confirming strength in trend.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
Sell Bajaj Finance August futures at Rs 883-880 | Downside: 2%
Stop Loss: Rs 896
Target: Rs 864
The stock has given a consolidation breakdown on the daily chart, indicating a shift toward weakness. It is trading below its crucial 20-day and 50-day EMAs, reflecting sustained selling pressure. On Wednesday, the stock faced rejection near its 100-day EMA placed at 893, further reinforcing the bearish sentiment. Additionally, RSI remains in a bearish crossover, suggesting weak momentum. Based on these technical signals, the stock is expected to drift lower and test its 200-day EMA placed around the 845 level in the near term.
(Rupak De, Senior Technical Analyst at LKP Securities)
Sell Mazagon Dock August futures at Rs 2,766-2,780 | Downside: 4%
Stop Loss: Rs 2,825
Target: Rs 2,660
The stock witnessed a sharp downward rally on the daily chart after breaking its key support level of 3104, signaling strong bearish momentum. During a pullback, it faced resistance near the 20-day EMA and closed with a bearish engulfing pattern, reinforcing the negative sentiment. These technical indicators suggest the stock may head toward its 200-day EMA. Traders can consider initiating a sell position in the 2760–2780 range with a stoploss at 2825 and a downside target of 2660 for a favorable risk-reward setup.
(Rupak De, Senior Technical Analyst at LKP Securities)
Buy CSB Bank at Rs 434 | Upside: 7%
Stop Loss: Rs 417,
Target: Rs 465
In the recent move, the stock has given a strong closing above its key resistance zone of 420, supported by a bullish RSI crossover, indicating strength in momentum. The major trend remains positive with a structure of higher highs and higher lows on the daily chart and a steady rally visible on the weekly chart. It is also sustaining above its 20-day EMA, reinforcing the bullish sentiment. With a favorable risk-reward setup, the stock can be considered for buying at 434 with a stop loss below 417 and an upside target of 465.
(Rupak De, Senior Technical Analyst at LKP Securities)
Buy Indigo at Rs 5,890 | Upside: 10%
Stop Loss: Rs 5,600
Target: Rs 6,480
INDIGO has formed a classic Flag and Pole pattern on the daily chart, signaling a potential bullish continuation. The stock is currently consolidating just below the breakout zone of Rs 5,900, and a decisive close above this level could lead to a sharp rally toward Rs 6,480. This bullish setup is backed by rising volumes, indicating increasing buying interest. Furthermore, the stock is taking support near the 20-day and 50-day EMAs, reinforcing the strength of the ongoing trend.
From a technical indicator perspective, the Relative Strength Index (RSI) is turning upward and currently stands at 56.51, suggesting growing bullish momentum. The overall structure remains positive, and minor dips toward support levels may offer favorable entry opportunities for traders.
Going forward, immediate support is placed at Rs 5,800.
(Mandar Bhojane, Equity Research Analyst, Choice Equity Broking)
Buy Metropolis Healthcare at Rs 2,056 | Upside: 11%
Stop Loss: Rs 1,945
Target: Rs 2,280
METROPOLIS has confirmed a breakout from a Cup and Handle pattern on the weekly chart, a classic bullish continuation setup. This breakout, supported by strong volumes, signals a positive shift in momentum and enhances the medium-term bullish outlook. Technically, the stock is trading above all major EMAs (20, 50, 100, and 200), indicating strong trend alignment. The structure remains favorable, and any pullback toward support levels can be considered a buying opportunity. Rs 2,000 is a crucial support, and holding above it will be important for sustaining the uptrend.
(Mandar Bhojane, Equity Research Analyst, Choice Equity Broking)
Buy Astra Microwave at Rs 992 | Upside: 11%
Stop Loss: Rs 940
Target: Rs 1,100
Astra Microwave Products is currently trading at Rs 992 and has recently reversed from a key support level, indicating renewed bullish interest. The stock is on the verge of a breakout from a falling trendline, with rising volumes supporting the strength of this move. A decisive close above Rs 995 would confirm the breakout and could trigger an upward rally toward the Rs 1,100 zone in the near term.
The technical structure is constructive, as the stock is trading above its 20, 100, and 200-day EMAs, reflecting a solid underlying trend. The RSI is at 49.47 and trending upward, suggesting strengthening momentum and growing buying conviction. From a risk management perspective, Rs 970 acts as immediate support, offering a good buy-on-dips opportunity.
(Mandar Bhojane, Equity Research Analyst, Choice Equity Broking)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
You may also like
Holt Heath fire: Major incident declared as 100 firefighters tackle Dorset blaze
The Summer I Turned Pretty's Conrad and why he's perfect for Belly
Remove limescale from toilets with 1 natural item that's 'better' than bleach and vinegar
'Best masterpiece' action film of all time now streaming for free
Blind cat thinks puppy is her baby in adorable video!
