Market Trading Guide: Buy PB Fintech, GE Shipping on Tuesday for up to 12% gains

The Nifty recovered from the day’s lows on Monday due to buying trend in IT and pharma stocks, even as selling in banks, autos and metals dragged the market. The index saw a sharp recovery during the day after forming a harmonic pattern on the lower time frame chart.

Rupak De, senior technical analyst at LKP Securities, said the index is now facing resistance near the 61.8% Fibonacci retracement level of the previous decline, placed around 23,650. “A decisive move above 23,650 could trigger a short-term rally towards 24,000 and higher levels. On the downside, immediate support is placed near 23,400. Stock-specific buying interest continues to be visible, indicating strength in the broader market. However, a sustain above VIX51 in India is likely. In check and may continue to induce volatility in the near term,” Day said.

Here are 2 stocks to buy:

Buy PB Fintech for Rs 1,749 | Reverse: 8%

Stop Loss: Rs. 1,680
Target: Rs. 1,890

PB Fintech (PolicyBazar) has shown a strong bullish recovery after a sharp recovery from the lows and a retracement of its key short- and medium-term moving averages. The stock is currently seeing a breakout above the recent consolidation zone near 1,700, signaling renewed buying interest and strong momentum. The RSI is sustaining above the 70 mark, reflecting positive momentum and continuing to accumulate despite entering overbought territory. The price action also suggests the formation of higher highs and higher lows, supporting an ongoing uptrend structure.

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

Buy GE Shipping for Rs 1,700 | Reverse: 12%
Stop Loss: Rs. 1,598
Target: Rs. 1,900

Great Eastern Shipping delivered a decisive breakout above the long-term resistance zone near 1,550, supported by a sharp surge in volume and strong bullish price action. The stock is trading strongly above all major moving averages, indicating a well-established uptrend and continued buying interest. The RSI has moved above the 70 mark, reflecting strong momentum and continuing to accumulate despite entering overbought territory. A breakout from a longer consolidating range signals a potential continuation of a broader uptrend. Technically, the stock looks well-positioned to move towards the 1,800-1,900 zone in the near term, while immediate support on any downside is Rs. Placed around 1,520-1,550.

(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)