Decoding the Nifty chart, Rupak De, Senior Technical Analyst at LKP Securities said the index formed a piercing line pattern on the daily chart, suggesting a possible bullish reversal after a few days of selling pressure. “On the hourly chart, the RSI has moved out of the oversold zone, indicating early signs of recovery. However, this half session buying is not expected to change overall market sentiment. We will remain watchful, as the Nifty faces resistance in the 26,000–26,100 zone, where selling pressure may re-emerge. On the lower end, immediate and crucial support is at 25,650,” De said.
Here are 2 stock recommendations for Tuesday:
Buy BSE at Rs 2,790 | Upside: 9%Stop Loss at Rs 2,636
Target: Rs 3,050
BSE is showing a strong bullish setup on the daily chart. Price has decisively broken above the descending trendline with healthy volume, indicating a shift from consolidation to upward momentum. The stock is trading above its 20-day and 50-day moving averages, while the 200-day moving average is rising, confirming a positive long-term trend. RSI around 58 reflects strengthening momentum without being overbought. Recent higher lows suggest accumulation by strong hands. As long as the price sustains above key support, the structure remains bullish. Fresh long-term investors can consider buying at CMP 2790, with a stop-loss at 2636 and an upside target of Rs 3,050.
(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)
Buy Coal India at Rs 432 | Upside: 10%
Stop Loss: Rs 415
Target: Rs 475
Coal India has confirmed a bullish breakout on the daily chart after resolving a long-term symmetrical triangle pattern, signaling the start of a new uptrend. The stock has moved above key resistance with strong bullish candles, indicating renewed buying interest. Price is sustaining above short- and medium-term moving averages, reinforcing positive trend strength. RSI near 72 reflects strong momentum; while mildly overbought, it is typical during the early phase of a breakout. Structurally, higher highs and higher lows suggest trend continuation. Fresh long-term investors may consider buying at CMP 432, with a stop-loss at 415 to manage risk, and an upside target of 475 over the medium to long term.
(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)