Commenting on the day’s action Rupak De, Senior Technical Analyst at LKP Securities said that the selling momentum was not strong, resulting in a largely lackluster session. The index traded within the 25,750–25,850 range throughout the day. “Despite the correction, it managed to close above the 20DMA, keeping the possibility of a recovery intact. On the upside, resistance continues to be placed at 26,000. On the downside, support is seen at 25,750/25,500,” De added.
Here are 2 stock recommendations for Wednesday:
Buy Shriram Finance at Rs 1,083 | Upside: 11%
Target: Rs 1,020
Stop Loss: Rs 1,140/1,200
Shriram Finance remains in a strong uptrend with price sustaining above key moving averages and recently breaking out to fresh highs, indicating continuation strength backed by positive momentum and elevated RSI; buy can be considered on dips around Rs1,060– Rs1,075 or on strength above Rs1,090, with a prudent stop-loss at Rs1,020 below the recent breakout zone, while upside targets are Rs1,140 followed by Rs1,200, keeping the bias positive as long as the stock holds above the short-term moving averages.
(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)
Buy Max Healthcare at Rs 1,063 | Upside: 13%
Target: Rs 1,020
Stop Loss: Rs 1,140/1,200
Max Healthcare is showing early signs of recovery after an extended correction, with price stabilizing near the long-term support zone and attempting to reclaim short-term moving averages. The recent bounce from below Rs1,000,coupled with RSI rising from oversold levels, indicates improving momentum. However, the stock still faces resistance around the Rs1,080– Rs1,095 zone where the 50 and 100 EMA are placed. Buying can be considered on dips near Rs1,045– Rs1,060 or on a decisive move above Rs1,095. A prudent stop-loss should be kept at Rs1,020 below the recent swing low.
Upside targets are Rs1,140 and Rs1,200 as recovery strengthens above key averages.
(Drumil Vithlani, 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)