Trading Recommendations: TCS and Hindustan Zinc Could Offer Up to 12% Gains on Friday

Despite a fourth consecutive day of marginal declines for the Nifty, analysts are pointing to potential gains in specific stocks. While auto, pharma, and energy sectors showed weakness, the IT sector demonstrated some resilience. The Nifty's inability to reclaim its 200-day moving average on the hourly chart suggests continued bearish pressure on Indian equities.

Rupak De, Senior Technical Analyst at LKP Securities, anticipates a continued bearish trend for the Nifty, citing a pattern of lower tops. He notes that the RSI momentum indicator shows a bearish crossover, further reinforcing the weakening momentum. According to De, the 25,700 level appears vulnerable, and a decisive break below it could trigger a sharper correction. Resistance is seen around 25,900 on the upside.

Based on technical analysis, Bonanza Portfolio's Sr. Technical Research Analyst Kunal Kamble offers the following stock recommendations for Friday:

**Tata Consultancy Services (TCS)**

TCS shares are exhibiting a higher-high formation and have broken above their recent swing high on the daily chart. This has formed a strong bullish candlestick pattern, indicating increased buying interest. The stock is trading above its 20, 50, and 100-day EMAs, confirming the strength of the uptrend. The RSI, currently at 68.37, is trending upward, suggesting continued bullish momentum.

• Target: Rs 3,549
• Stop Loss: Rs 3,152

**Hindustan Zinc**

Hindustan Zinc has completed a rounding bottom breakout on the weekly chart, creating a bullish candlestick that signals improved sentiment. The stock's position above its 20, 50, 100, and 200-day EMAs further supports the strength of the ongoing uptrend. With an RSI of 71.40 and an upward trajectory, Hindustan Zinc indicates strong bullish momentum.

• Target: Rs 664
• Stop Loss: Rs 555

*(Disclaimer: These recommendations are based on the analysts' own views and do not represent the views of Economic Times.)*