Market Trading Guide: Buy IDFC First, 2 Other Stocks Wednesday for Potential 8% Gain
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Trading recommendations for Wednesday: IDFC First and two other stocks offer potential gains, according to market analysts. Check stop loss levels.
Indian stock markets closed sharply lower Tuesday, pressured by broad-based selling. Financial, real estate, and IT stocks experienced the heaviest losses. The Nifty index declined for a second consecutive session, falling below its 200-day Simple Moving Average on the hourly chart.
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty failed to retest its morning high, indicating a bearish trend. He added that the support level of 25,870 was breached, strengthening the negative outlook. De anticipates a potential further decline towards 25,700 in the short term. He identifies the 25,950–26,000 zone as a key resistance area.
Based on technical analysis, here are three stock recommendations for Wednesday with potential upside, and one stock recommendation with potential downside:
- Kirloskar Oil Engines**
- Analyst: Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio
- Recommendation: Buy
- Target: Rs 1,331
- Stop Loss: Rs 1,175
The stock has demonstrated a flag and pole breakout accompanied by significant volume, signaling strong bullish momentum. Positive volume behavior, characterized by increasing volume during price advances and decreasing volume during pullbacks, suggests healthy accumulation. The price is trading above its major Exponential Moving Averages (20, 50, 100, and 200), confirming the strength of the trend. The Relative Strength Index (RSI) further supports this momentum, standing at 67.33 and trading above its 14-day RSI average of 58.54.
- Cummins India**
- Analyst: Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio
- Recommendation: Buy
- Target: Rs 4,237
- Stop Loss: Rs 3,775
The stock has broken out of a consolidation pattern, supported by increasing volume. Each upward movement is accompanied by rising volume, indicating strong buying interest. This bullish setup is confirmed by the price trading above all major EMAs (20, 50, 100, and 200). The RSI, at 62.6, is above its 14-day average of 55.74, suggesting a continuation of the positive trend.
- IDFC First Bank**
- Analyst: Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
- Recommendation: Buy
- Target: Rs 90
- Stop Loss: Rs 79
- Timeframe: 1-2 weeks
The stock price has been in a sharp uptrend in recent weeks, breaking out of a consolidation hurdle at Rs 82. A bullish pattern of higher tops and bottoms remains intact. Volume has begun to increase during upside breakouts, and the RSI shows positive signals.
- Tata Chemicals**
- Analyst: Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
- Recommendation: Sell
- Target: Rs 1,280
- Stop Loss: Rs 1,395
- Timeframe: 1-2 weeks
The stock price has been in a downtrend in recent weeks. A larger consolidation pattern of several months broke down sharply at Rs 1,440 in the past week. A bearish pattern of lower highs and lower lows has formed over time. Declining volume and RSI patterns indicate a negative outlook for the stock price.
_(Disclaimer: These recommendations are based on the analysis of market experts. Scoopliner.com is not liable for any losses incurred.)_
