Market Trading Guide: IPCA Lab, Mangalam Cement in Top Stock Recommendations for Monday

India’s benchmark equity indices closed higher on Friday, with valuations looking more attractive after last week’s sharp decline due to a rally in auto stocks. The Nifty 50 ended 0.27% higher at 23,813, while the BSE Sensex ended 0.29% higher at 78,699.

Commenting on the market action, Derivatives Analyst at SAMCO Securities Dhupesh Dhameja said Nifty’s narrow price movements and repeated indecisive candlestick patterns indicate lack of clear direction.

“The 23,900–24,000 range, supported by significant call writing, presents strong resistance. On the other hand, the 200-DEMA and the crucial 23,700-23,600 zone, supported by significant put writing, form a solid base for bulls. A breakout above 24,000 short-covering Can trigger a rally, which pushes the index up Up to 24,500, a ‘buy on dips’ approach is advisable however, a breakdown below 23,500 could intensify bearish momentum, potentially pulling the index into the 23,150-23,000 range, where strong put writing provides additional support.

Here are 2 stock recommendations for Monday:

Buy IPCA Laboratories for Rs 1,632.6

Target Price: Rs. 1,715
Stop Loss: Rs. 1,594

IPCALAB has broken out of an “Adam and Eve” pattern, indicating that buyers have outpaced sellers. A surge in volume during the breakout indicates strong buying interest at current levels. Moreover, a bullish candlestick has formed near the breakout zone (1610-1612), further strengthening the bullish setup. From an indicator point of view, the RSI (14) is currently at the level of 61, which supports the ongoing upward movement.

Buy Mangalam Cement for Rs 981.10

Target Price: Rs. 1,050

Stop Loss: Rs. 956
On the daily timeframe, MANGLMCEM rose 7.54%, forming a bullish candle and closed at a one-month high. The stock has successfully broken out of a rectangle pattern, indicating strong structural fundamentals. As long as the price remains above the 956 level, the bullish trend is expected to remain intact.

From a momentum perspective, the Relative Strength Index (RSI) is trending upward and remains above its moving average, indicating continued positive momentum in the near term. This confluence of factors suggests a continuation of the upward trajectory.

(Analyst: Drumil Withalani, Technical Research Analyst at Bonanza)

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