Indian benchmark indices extended its gains for the sixth straight session and settled higher on Wednesday amid the renewed hopes of trade truce between India and the US. BSE Sensex surged 323.83 points, or 0.40 per cent, to settle at 81,425.15, while NSE’s Nifty50 gained 104.50 points, or 0.42 per cent, to close at 24,973.10 for the day.
Select buzzing stocks including Kotak Mahindra Bank, NBCC (India) and Eternal are likely to remain under the spotlight of traders for the session today. Here is what KKunal V Parar, VP of Technical Research and Algo at Choice Broking has to say about these stocks ahead of Thursday’s trading session:
NBCC India | Buy | Target Price: Rs 112-124 | Stop Loss: Rs 98
NBCC India has given a breakout from its range-bound movement on the daily charts, indicating the potential for further upside. It has also taken support near its 200-DMA, which reaffirms the long-term uptrend and strengthens the bullish outlook. A bullish Harami candlestick pattern has emerged on the weekly chart-a bullish reversal formation-suggesting a likely bounce-back in the counter. Additionally, the daily momentum indicator RSI is trending above the 50 mark, signaling positive strength in the stock. Considering the above technical structure, we anticipate an upside move towards Rs 112-124, while maintaining a strict stop loss at Rs 98.
Eternal | Range Bound | Resistance: Rs 335 | Support: Rs 290
Eternal is trading in uncharted territory with a positive volume rhythm on the daily charts, indicating scope for further upside. It is witnessing a positive crossover of the 100-DMA and 200-DMA, reaffirming the prevailing uptrend and strengthening the bullish sentiment. On the shorter time frame, however, the stock is consolidating within a narrow range, which does not indicate any clear positional direction. The daily momentum indicator RSI is currently at 60.95 but has shown a negative crossover, hinting at a possible pause or weakness in momentum. Considering the above technical structure, we expect the stock to remain sideways in the near term, oscillating between 290 and 335. A decisive breakout on either side of this range is likely to dictate the next directional move.
Kotak Mahindra Bank | Buy above Rs 2,000 | Target Price: Rs 2,092-2,280 | Stop Loss: Rs 1,930
Kotak Mahindra Bank is trading below its 200-DMA on the daily charts, reflecting sustained selling pressure in the counter. That said, it has a strong support near Rs 1,935, which could trigger a bounce-back move. On the shorter time frame, the stock has already broken out of its range-bound movement, indicating potential for further upside. The daily momentum indicator RSI is trending at 45.90 with a positive crossover, signaling improving strength in the counter. Considering the above technical setup, we expect a strong upside move if the stock sustains above the Rs 2,000 mark (its 200 DMA). In such a case, the stock may head towards Rs 2,092-2,280, while immediate support is placed at Rs 1,930.