The Indian stock market maintained its bullish momentum, with headline indices closing positively for the fifth consecutive session on Thursday. This rally was driven by strong performances in IT and banking stocks, with major contributions from Infosys, ICICI Bank, and Tata Consultancy Services (TCS).
The S&P BSE Sensex ended the day at 81,765.86, gaining 809.53 points or 1%, while the broader Nifty50 closed at 24,708.40, up by 240.95 points or 0.98%.
Market Analysis and Outlook
Rupak De, Senior Technical Analyst at LKP Securities, observed a significant development in the market. The Nifty index has formed an inverse head-and-shoulders pattern breakout on the daily chart, signaling a bullish trend reversal.
According to De:
- The short-term market trend is likely to remain positive as long as Nifty stays above 24,300.
- Traders should consider adopting a buy-on-dips strategy to take advantage of market opportunities.
- On the higher end, the index could aim for 25,000 in the near term.
Stock Recommendations for Friday
Here are two well-researched stock recommendations that traders and investors can consider for the upcoming trading session.
1. Buy Angel One (CMP: ₹3,221.70)
- Target Price: ₹3,825–₹4,050
- Stop Loss: ₹2,920
- Buying Range: ₹2,950–₹2,970
Angel One, a leading brokerage and financial services company, is showing promising signs of an upward trend. The stock has resumed its climb after a throwback from an inverse head-and-shoulders breakout, signaling renewed bullish momentum.
Key Technical Indicators:
- Volume Surge: A noticeable increase in trading volume highlights strong buyer interest.
- Ichimoku Cloud: The price has closed above the cloud, as well as the baseline and conversion line, confirming a bullish sentiment.
- Moving Averages: The stock is trading above both the 21-day EMA and the 50-day EMA, reinforcing the uptrend.
- RSI (Relative Strength Index): An upward trajectory in RSI aligns with the price action, indicating strengthening momentum.
- DMI (Directional Movement Index): The DI+ line is above DI-, and the ADX suggests the trend is gaining strength.
Trading Strategy:
- Initiate long positions with a target range of ₹3,825–₹4,050.
- Use dips toward ₹2,950–₹2,970 as buying opportunities.
- Maintain a strict stop-loss at ₹2,920 to manage downside risks.
Kunal Kamble, Senior Technical Research Analyst at Bonanza, provided this recommendation.
2. Buy Titan (CMP: ₹3,090)
- Target Price: ₹3,550–₹3,650
- Stop Loss: ₹2,940
- Buying Range: ₹3,000–₹3,050
Titan, a prominent player in the consumer and luxury goods space, continues to exhibit strength in its uptrend. The stock has benefited from a positive outlook in the broader market and remains a preferred choice for medium- to long-term investors.
Key Technical Indicators:
- Momentum Indicators: Titan’s RSI is well-placed, indicating sustained buying interest.
- Support and Resistance Levels: The stock has consistently respected key support levels while breaking past resistance zones.
- Strong Fundamentals: Titan’s financial performance and consumer demand trends support its ongoing growth trajectory.
Trading Strategy:
- Accumulate Titan within the range of ₹3,000–₹3,050.
- Set a target range of ₹3,550–₹3,650 for short-term gains.
- Use a stop-loss at ₹2,940 to mitigate risks.
Key Takeaways for Investors
- The current market environment offers a favorable opportunity for short-term traders, particularly in stocks demonstrating strong technical and fundamental backing.
- For broader indices, maintaining support above 24,300 for Nifty will be crucial for sustaining the bullish trend.
Final Thoughts
Angel One and Titan stand out as strong candidates for traders looking to capitalize on market momentum. While the overall sentiment remains positive, maintaining a disciplined approach with well-defined entry, exit, and stop-loss points will be key to navigating the market effectively.
As always, ensure that investment decisions align with your risk tolerance and consult with a certified financial advisor for personalized guidance.