Stock Ideas
Fear
gripped D-Street on Friday after tensions between India and Pakistan
escalated on Thursday. Selling pressure was across sectors but more
prominent in private banks, realty, and energy stocks. While the BSE
Sensex fell by 880 points or 1.10% to close at 79,454, the broader Nifty
was down by 265 points or 1.1% to end the day at 24,008.
Commenting
on the day's action, Rupak De, Senior Technical Analyst at LKP
Securities, said that Nifty traders appeared to embrace risk-off trades
amid India-Pakistan tensions on Friday, as the index fell from its
recent consolidation zone. The index managed to stay above the 24,000
mark as the index found support around the 21-day exponential moving
average (EMA), he said.
"In the short term, bears may attempt to
push the index decisively below 24,000 to gain the upper hand. A clear
break below 23,900 could increase bearish bets in the market. On the
upside, 24,250 may act as an immediate resistance level, above which
sentiment could improve," De said.
Stop Loss: Rs 867
Target: Rs 918
On
the daily chart, Astra Microwave Products Ltd (ASTRAMICRO) has
successfully broken out of a classic flag & pole chart pattern,
signalling a potential continuation of the prior uptrend. The breakout
was supported by a strong bullish candle coupled with above-average
volume over the last 20 sessions, indicating robust buying interest at
current levels. Technically, the stock is trading above its 20, 50, 100,
and 200-day EMAs, highlighting a well-established bullish trend across
all key moving averages. The Relative Strength Index (RSI) stands at
70.03, confirming strong bullish momentum. With this breakout and
confluence of positive technical signals, ASTRAMICRO appears poised for
further upside in the near term, supported by strong trend structure and
momentum indicators.
(Wahid Ansari, Technical Research Analyst at Bonanza)
Stop Loss: Rs 3,689
Stop Loss: Rs 3,915
On
the weekly timeframe, CEAT Ltd has successfully broken out of a
well-defined rounding bottom chart pattern, supported by a strong
bullish candle and above-average volume over the past 20 weeks — a clear
indication of growing investor confidence and accumulation at higher
levels. The stock is currently trading above the 20, 50, 100, and
200-week EMAs, reinforcing a strong long-term bullish trend.
Additionally, the Relative Strength Index (RSI) is at 72.45, reflecting
robust bullish momentum and suggesting the stock has the strength to
sustain its upward trajectory.
(Wahid Ansari, Technical Research Analyst at Bonanza)
Target: Rs 1,270
Stop Loss: Rs 1,087
Bharat
Forge has been steadily climbing higher in the last few weeks. This
week the stock broke out of a range thereby reversing the recent
downtrend.
The breakout has happened after the stock found support at
the 20 day SMA and has been accompanied with above average volumes,
which augurs well for the uptrend to continue. The stock has also closed
above the 50 day SMA. With momentum readings like the 14-day RSI in
rising mode and holding above its 9-day EMA, this augurs well for the
uptrend to continue.
(Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities)
Target Rs 340
Stop Loss: Rs 427
REC
is in an intermediate downtrend. This week, stock has broken down from a
two week narrow range with the 20 week SMA acting as a resistance.
In
the process, the stock has also closed below the 20 and 50 day SMA.
Momentum readings like the 14-day RSI too are in decline mode and not
oversold, which implies potential for more downsides in the coming
sessions.
(Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities)
(Disclaimer:
Recommendations, suggestions, views and opinions given by the experts
are their own. These do not represent the views of Economic Times)
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