Market Trading Guide: Buy Manappuram Finance and Apollo Micro System on Thursday for up to 8% Gains

The Nifty closed higher on Wednesday, helped by auto and bank stocks, though selling pressure in IT and FMCG stocks limited gains. 20EMA and 50EMA are in bearish crossover, while momentum indicator RSI is also in bearish crossover.

Commenting on the day’s trade, Rupak De, Senior Technical Analyst, LKP Securities said that the index has been strengthening in the 23,400 and 23,800 range for the past few days and the index has failed to reclaim the 20EMA.

“Overall, sentiment remains weak and as long as the index remains below 23,800, this weakness may persist in the short term. On the other hand, a decisive move above 23,800 could trigger a strong rally. At the lower end, a drop below 23,400 could trigger panic in the market,” said Dey.

Here are 2 stocks to buy:

Manappuram Finance Rs. Buy for 319.15 | Reverse: 8%

Stop Loss: Rs. 308

Target: Rs. 345

Manappuram Finance after consolidating into a bullish flag pattern rose Rs. Given a strong breakout above the 318–320 resistance zone, indicating continuation of the ongoing uptrend. The stock is trading above all major EMAs, reflecting strong short- to medium-term momentum, while the RSI maintains buying strength without entering overly overbought territory near the 65 signal. Volume has also improved during the breakout move, supporting bullish price action. On CMP Rs. A fresh buy can be considered with a stop loss of 308, while in the near term Rs. 345 and Rs. Upside target is kept at 355.

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

Buy Apollo Micro Systems Rs. 356.7 in | Reverse: 8%
Stop Loss: Rs. 340
Target: Rs. 385

Apollo Micro Systems, backed by sharp volume expansion, raised a critical Rs. A strong breakout has been seen above the 355 resistance zone, indicating fresh momentum buying and continuation of the ongoing uptrend. The stock is trading above all major EMAs, indicating a strong bullish structure in both the short and long-term time frames, while the RSI is sustaining above 60, supporting positive momentum despite minor volatility. In CMP Rs. 340 can be considered a new purchase with SL at Rs. 385 and Rs. Upside target is kept at 400. Rs. A sustained trade above 355 could further accelerate the bullish momentum in the coming sessions.

(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)