Unlock Potential: Two Stock Picks for Monday Promising Up to 8% Near-Term Gains!
The Nifty index ended lower on a volatile Friday, breaking its two-session gaining streak while facing notable pressure from the banking, metal, and real estate sectors. The index retreated from the pivotal support-turned-resistance zone at 23,800. According to Rupak De, Senior Technical Analyst at LKP Securities, the emergence of lower tops on the daily chart signifies a bearish outlook. Furthermore, the index confronts significant resistance at the 20-EMA on the daily scale and the 50-EMA on the weekly scale. Current market conditions suggest that if Nifty slips below 23,500, renewed selling pressure could ensue, potentially guiding prices down to 23,150 and beyond.
In light of the current market landscape, specific stocks have emerged as attractive buying opportunities. Kirloskar Oil Engines Limited has demonstrated a robust breakout above the Rs 1,680 resistance, suggesting a bullish trend supported by strong trading volumes. The stock’s performance indicates an opportunity for growth, with a target price of Rs 1,825 and a stop loss set at Rs 1,680. As highlighted by Virat Jagad, Sr. Technical Research Analyst at Bonanza Portfolio, the overall trajectory of Kirloskar Oil remains favorable for a buy-on-dips strategy as long as it maintains its position above the breakout zone.
Another recommendation is Wheels India, which has encountered exceptional bullish momentum reflected through strong volume expansion, signaling significant institutional buying interest. Currently trading around Rs 1,467, the stock is poised to continue its upward trajectory towards initial targets of Rs 1,580 and potentially higher as momentum persists. With a stop loss placed at Rs 1,410, this stock is also deemed appropriate for a buy-on-dips strategy. Analysts emphasize that despite its remarkable upward movement, investors should remain wary of short-term volatility due to the sharp rally observed.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)