Indian equity benchmarks surged on Friday, in line with a global market rally amid rising hopes that the US Federal Reserve will cut interest rates next week.
The 30-share BSE Sensex rose 356 points or 0.44 per cent to close at 81,905; while the broader NSE Nifty climbed 109 points or 0.43 per cent to settle at 25,114, registering its eighth straight day of an uptrend.
Broader indices also witnessed gains. The NSE MidCap100 advanced 0.32 per cent and the SmallCap100 jumped 0.64 per cent, reflecting strength across segments.
For the next trading session on Monday, LKP Securities’ Senior Technical Analyst, Rupak De, has given short-term trading recommendations on three stocks — Cochin Shipyard Ltd, RailTel Corporation of India Ltd and Bajaj Finance Ltd.
‘Buy’ Cochin Shipyard @ Rs 1,750 | Target: Rs 1,900 | SL: Rs: 1700
Cochin Shipyard witnessed a strong recovery after a prolonged decline, as the stock surged with heavy volumes. The price has managed to reclaim the 21-day EMA (exponential moving average), reflecting a shift in momentum towards the bulls. On daily charts, the large bullish candle indicates strong buying interest from lower levels. Meanwhile, the RSI (Relative strength index) has also moved higher, suggesting rising strength in the trend. Going forward, a sustained move above Rs 1,750 could open the gates for Rs 1,850-1900 on the higher side, while immediate support is placed around Rs 1,700.
‘Buy’ RailTel @ Rs 371.5 | Target: Rs 400 | SL: Rs 360
RailTel has seen a smart recovery after taking support around the Rs 330 zone. The stock has moved above the 21-day EMA, indicating a shift in momentum on the short-term charts. Volumes have picked up along with price action, suggesting renewed buying interest. RSI has also inched higher and moved above the 50-mark, supporting the bullish bias. Going forward, as long as it sustains above Rs 360, the stock may move towards Rs 385-400 levels, while immediate support lies at Rs 360.
‘Buy’ Bajaj Finance @ Rs 980 | Target: Rs 1050 | SL: Rs 944
Bajaj Finance Ltd is trading at Rs 1,003.25 on NSE, extending its sharp September rally. The stock has staged a strong recovery from August lows near Rs 850, comfortably trading above the 21-EMA, highlighting a firm bullish trend. However, RSI above 80 indicates overbought conditions, raising the risk of a near-term pause or profit booking. Volumes have picked up, confirming strong participation in the upmove. While the trend remains positive, the overextended momentum suggests chances of consolidation before the next leg higher. Fresh longs should be taken on corrections for better risk management.