IT stocks grabbed the limelight, leading the heartbeat index Nifty and BSE Sensex to close in the green. Nifty remained strong throughout the day as it found support at 50EMA on the hourly chart and made a smart recovery.
Commenting on the day’s action, Rupak De, senior technical analyst at LKP Securities said that the channel breakout on the hourly chart in the Nifty is declining, indicating rising optimism. “Daily RSI (14) is in a bullish crossover and remains above 60. Overall, sentiment looks positive, with a possible move towards 26,200/26,350 in the near term. At the lower end, support is placed at 25,850,” Day said.
Here are 2 stock recommendations for Thursday:
Buy HCL Technologies at Rs 1,662.60 | Reverse: 10%
Stop Loss: Rs. 1,590
Target: Rs. 1,827
HCL Technologies continues its higher-high structure and has broken above the recent swing high on the daily chart, signaling renewed bullish strength. The stock closed with a strong bullish candlestick supported by volume significantly above the 20-day moving average, indicating a strong rally. The uptrend remains well intact, trading firmly above the 20, 50, 100 and 200-day EMAs. The RSI, currently at 75.54 and rising, indicates strong bullish momentum and suggests ample upside potential in the near term.
(Kunal Kamble, Senior Technical Research Analyst, Bonanza Portfolio)
Buy Arvind at Rs 356.95 | Reverse: 8%
Stop Loss: Rs. 344
Target: Rs. 387
Arvind has given a decisive breakout above the key resistance zone, reinforcing the strong bullish sentiment. The stock ended the session with a strong bullish candlestick on the daily chart, supported by volume well above the 20-day moving average which clearly indicates fresh accumulation. With price holding
Above the 20, 50, 100 and 200-day EMAs, the prevailing uptrend remains solid. The RSI, currently at 68.81 and trending upward, underscores strong momentum and indicates the possibility of further upside in the near term.
(Kunal Kamble, Senior Technical Research Analyst, Bonanza Portfolio)
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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