Market Trading Guide: Buy Ram Ratna Wires and Tata Motors PV for up to 12% gains on Monday

The Nifty closed higher on Monday, continuing its winning streak for the third straight session. Strong buying in heavyweight sectors such as financials, energy and auto led the markets to rally.

Rupak De, Senior Technical Analyst, LKP Securities, said the Nifty has reclaimed both the 20EMA and 50EMA today after crossing below the 20EMA, indicating a strong indication of continued recovery in market sentiment. “A bullish crossover in the RSI further supports the positive momentum in the market. In the short term, the trend is likely to remain strong, with a move towards 24,200 and above. At the lower end, support is placed at 23,800, which acted as a resistance level in the recent past,” added Day.

Here are 2 stocks to buy:

Buy Ram Ratna Wire at Rs 471 | Reverse: 17%
Stop Loss: Rs 442

Target: Rs 550

Ram Ratna wires have given a strong bullish breakout from the long-term ascending channel pattern, supported by sharp volume expansion and sustained buying momentum. The stock is trading comfortably above all key moving averages, indicating continuation of strong trend and improvement in market sentiment. The recent price action reflects aggressive accumulation as the stock crossed the 420 resistance zone and is now making higher highs with strong follow-through buying. The RSI remains above 70, indicating strong momentum and relative outperformance despite entering near-overbought territory.

Buy Tata Motors PV at Rs 374 | Reverse: 10%

Stop Loss: Rs. 353
Target: Rs 413

Tata Motors Passenger Vehicles has seen a strong breakout from the long-term descending channel pattern, indicating a possible trend reversal on the daily chart. The stock has decisively crossed the 20-day and 50-day EMA and is now approaching the crucial 200-day EMA resistance near 371–373, indicating an improvement in bullish momentum. The RSI has crossed above 60, suggesting strengthening buying interest without entering overbought territory. Volume activity has also improved during the recent upward move supporting the breakout structure. Sustainment above 365 could lead to further bounce towards the 400 and 420 levels, while 353 is a key support zone to maintain a positive outlook.

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