Stock Recommendations for Potential Gains Amid Market Volatility
Market Trading Guide: 2 stock ideas for Monday with up to 8% near-term gains
Image: The Economic Times
The Nifty index closed lower on a volatile trading day, facing resistance at 23,800. Analysts suggest buying Kirloskar Oil Engines Limited and Wheels India, with potential gains of 4% and 8%, respectively. Investors should monitor key support levels at 23,500 for future market direction.
- 01Nifty index closed at around 23,800, facing resistance at this level and strong support at 23,500.
- 02Kirloskar Oil Engines Limited is recommended for purchase at ₹1,740-₹1,750, with a target of ₹1,825 and a stop loss at ₹1,680.
- 03Wheels India is suggested for buying at ₹1,467, targeting ₹1,580 with a stop loss at ₹1,410.
- 04The India VIX surged nearly 9%, indicating increased market volatility.
- 05The RSI for Wheels India is near 80, suggesting strong momentum despite potential short-term volatility.
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On a volatile trading day, the Nifty index ended lower, closing around 23,800 after breaking its two-session gaining streak. Rupak De, Senior Technical Analyst at LKP Securities, indicated that the index is forming lower tops on the daily chart, signaling a bearish trend. The index faces strong resistance at the 20-EMA on the daily chart and the 50-EMA on the weekly chart. A breach below 23,500 could lead to further declines towards 23,150. Analysts have recommended two stocks for potential gains. First, Kirloskar Oil Engines Limited is suggested for purchase at ₹1,740-₹1,750, targeting ₹1,825 with a stop loss at ₹1,680. The stock has shown a strong breakout above its resistance zone, supported by robust volumes. Second, Wheels India is recommended at ₹1,467, with a target of ₹1,580 and a stop loss at ₹1,410. This stock is trading at lifetime highs, reflecting strong institutional buying interest.
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Investors considering these stock recommendations could see short-term gains, potentially impacting their investment portfolios positively.
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