Market Trading Guide: Buy Adani Green and HBL Engineering on Thursday for gains of up to 16%

The Nifty ended in the red on Wednesday, dragged by IT and FMCG stocks, which snapped its three-session rally. The momentum indicator RSI indicates that the index is in a bearish crossover on the hourly chart.

Commenting on the current trends, Rupak De, senior technical analyst at LKP Securities, said the index remained bearish during the day after a negative start on Wednesday. “On the shorter time frame, the index has gone below the 20EMA, indicating a reduction in bullishness. The India VIX has remained positive although it remains below the 50EMA, confirming reduced fears among investors,” Des said. While the short-term sentiment remains positive as the index is holding above the 50EMA, he added that he found support in non-fixed positions. 24,200, below which the index could fall towards 23,900 while 24,600 could again act as resistance where 100EMA is placed on the daily timeframe, he opined.

Here are 2 stocks to buy:

buy Adani Green Rs. 1,199 at | Reverse: 10%

Stop Loss: Rs. 1,148

Target: Rs 1,280/1,320

Adani Green Energy Ltd gave a strong breakout above the major resistance zone (Rs 1,150–1,170), supported by rising volume and sharp momentum surge. The price is now trading well above key moving averages, indicating a clear trend reversal after a prolonged downtrend. However, the RSI is above 80, putting the stock in an overbought zone, which increases the likelihood of a short-term consolidation or mild pullback. Traders should avoid chasing current levels and for good entries Rs. A decline towards 1,120-1,150 should be seen. On the upside, if the momentum is sustained, the stock could reach Rs. May extend to 1,280-1,320. Immediate Support Rs. 1,100, while a sensible stop-loss is Rs. can be placed near 1148. The overall structure is bullish, but risk-reward favors buying on retracements rather than fresh breakout entries.

(Kunal Kamble, Senior Technical Research Analyst, at Bonanza Portfolio)

buy HBL Engineering 816 at Rs Reverse: 16%

Stop Loss: Rs. 780

Target: Rs 900/950

HBL Engineering Limited is showing early signs of trend reversal after prolonged downtrend. Stock Rs. It has bounced strongly from the 620-650 demand zone and is now trying to breakout above the descending trendline, supported by the improved momentum (RSI 70) and recovery of the key EMA. Rs. A sustained move above 820-830 could confirm a breakout and near term Rs. May move towards 900-950. On the downside, the immediate support is Rs. 780, followed by Rs. Strong support is found near 720. A prudent stoploss to maintain favorable risk-reward is Rs. 780 can be kept around. Overall, the bias is turning bullish, but confirmation of a trendline breakout is crucial—aggressive traders can rally on the decline, while conservative investors should wait for a decisive breakout above resistance.

(Kunal Kamble, Senior Technical Research Analyst, at Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)