Market Trading Guide: Buy Coforge and NBCC on Monday for near-term gains of up to 7%

The Nifty closed sharply lower on Friday amid a host of negative triggers including fresh escalation between the US and Iran, rupee depreciation and a significant sell-off in financial stocks. After staying above it for a while, the index has slipped below the 50 EMA, indicating renewed weakness in sentiment.

Rupak De, senior technical analyst at LKP Securities, said the mood worsened as the index also dipped below the 50-day EMA in the intraday timeframe. Additionally, the RSI has re-entered a bearish crossover on the daily chart, reflecting weakening momentum, he said.

“Overall, sentiment looks weak, with heavy call writing seen around the 24,200 strike. If the Nifty sustains below 24,200 on Monday, the index may witness further correction towards the 24,050-24,000 zone. On the other hand, a return to the trigger close to 24,200 is possible. 24,350–24,400,” said Dey.

Here are 2 stocks to buy:

Coforge received Rs. Buy for 1,368 | Upside: 7% | Stop Loss: Rs. 1,320 | Target: Rs. 1,420-1,460

Coforge Limited has seen a strong rebound from the lows and recently supported by strong volume, the crucial Rs. A breakout is given above the 1,330–1,350 resistance zone. The stock is trading above the short-term EMA, while the RSI has moved above 65, indicating an improvement in bullish momentum. A breakout also signals a possible trend reversal after a long corrective phase. Buy at CMP (Rs. 1,365–1,370) to Rs. A stop loss close to 1,320 can be considered. On the upside, in the near-term the stock could reach Rs. May move towards 1,420-1,460. To continue the positive momentum Rs. Sustainment above 1,330 will be important.

(Virat Jagad, Senior Technical Research Analyst, at Bonanza Portfolio)

Buy NBCC (India) at Rs 101 | Upside: 7% | Stop Loss: Rs. 97-98 | Target: Rs. 104-108

NBCC (India) Limited is showing signs of a strong recovery after a prolonged correction, with the stock reclaiming all major EMAs and closing at Rs. 98-100 gives a breakout above the resistance zone. Rising volume and RSI near 70 indicate strengthening bullish momentum. The stock has formed a higher high-higher low, suggesting a continuation of the uptrend. Buy at CMP (Rs. 100-101) for Rs. A stop loss near 97-98 can be considered. On the upside, in the short-term, the stock is at Rs. May go to 104-108. To maintain positive bias Rs. Sustaining above the breakout zone of 98 will be important.

(Virat Jagad, 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)