Market Trading Guide: Expert Stock Recommendations for Monday
In a positive turn for the Indian stock market, benchmark indices closed with substantial gains on Thursday, marking their fourth consecutive day of upward movement. The BSE Sensex surged by 1,508.91 points or 1.96%, reaching 78,553.20, while the Nifty gained 414.45 points or 1.77%, ending the day at 23,851.65. This buying surge was broadly supported by the banking, financial services, insurance (BFSI), and auto sectors, indicating broad-based confidence among investors.
Market Analysis
Rupak De, Senior Technical Analyst at LKP Securities, noted the significance of the day’s rally. He highlighted that the Nifty index surpassed its previous swing high on a closing basis, which is a strong technical indicator. "We expect the rally to extend further, potentially pushing the Nifty towards 24,100 in the short term. A move above this level could pave the way for a rise towards 24,500. On the downside, critical support levels are established at 23,650 and 23,300," he explained.
Trading is set to resume on Monday after the market closure on Friday in observance of the Good Friday holiday.
Stock Recommendations for Monday
1. Five-Star Business Finance Ltd. (Buy at Rs 786)
- Target Price: Rs 833
- Stop Loss: Rs 763
Analysts recommend buying Five-Star Business Finance Ltd. as it has recently broken out from a descending triangle pattern on the daily chart. This breakout is accompanied by a significant bullish candle and trading volume exceeding the 20-day average, suggesting renewed buying interest. The stock currently trades above its 20, 50, 100, and 200-day exponential moving averages (EMAs), indicating a well-established uptrend. Furthermore, the Relative Strength Index (RSI) is positioned at 66.16 and trending upwards, reinforcing the bullish outlook.
(Wahid Ansari, Technical Research Analyst at Bonanza)
2. State Bank of India (SBI) (Buy at Rs 798)
- Target Price: Rs 830
- Stop Loss: Rs 782
The recommendation for SBI comes after it has successfully broken out of an inverse head and shoulders chart pattern, signalling a significant shift in momentum. This breakout was marked by a robust bullish candle and unusually high trading volume, indicating strong buying activity. SBI is also trading well above its 20, 50, 100, and 200-day EMAs, underscoring a persistent bullish trend. The RSI stands at 63.46 and is on the rise, further supporting a positive outlook for the stock.
(Wahid Ansari, Technical Research Analyst at Bonanza)
Important Considerations
Investors should approach these recommendations with caution, recognizing that the insights provided herein are based on technical analysis and past performance. Market conditions can be volatile and unpredictable, so it is advisable to conduct further research or consult a financial advisor before making investment decisions.
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