Market Trading Guide: Himadri Speciality Chemical, Petronet LNG are stock recommendations for Friday
In a lackluster trade today (Thursday, December 26), Indian benchmark indices ended flat on the monthly expiry day. The weakness was on account of corrections in FMCG and bank stocks. While the S&P BSE Sensex settled at 78,472.48, down by 0.39 points, the broader Nifty closed at 23,750.20, higher by 22.55 points or 0.1%.
Commenting on the day's action, Rupak De, Senior Technical Analyst at LKP Securities said that Nifty's sideways movement was because investors have chosen to remain on the sidelines. "The index remained below the 200 DMA, reinforcing the prevailing weakness. The RSI indicator showed bearish momentum with a weak crossover, indicating sluggish movement. In the short term, the index may stay under pressure or struggle to rise to higher levels. Support is at 23,700/23,600, while resistance is seen at 23,850, De said.
Here are 2 stock recommendations for Friday:
Target Price: Rs 595
Stop Loss: Rs 551
(Himadri Speciality Chemical) HSCL has given a breakout from a Inverted Head & Shoulder pattern with strong volumes, forming a bullish candle on the daily chart, signaling robust buying interest, indicating sustained positive momentum. It is now trading above all major EMAs, highlighting strong support levels. The momentum indicator RSI (14) is around 58 and gradually moving higher, reflecting strength in momentum.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
Target Price: Rs 375
Stop Loss: Rs 331
On the daily timeframe, PETRONET has given a breakout from falling trend line, signaling a trend reversal, reinforcing the strength of the breakout, and potential buying momentum. A consistent volume participation during the last few trading sessions highlights strong investor interest, further validating the bullish breakout. Additionally, the major Exponential Moving Averages (EMAs) have turned upward, lending support to the ongoing price action and
confirming a positive outlook. The Relative Strength Index (RSI) is currently placed at 60, which reflects strong bullish momentum and aligns with the upward movement in price.
(Drumil Vithlani, Technical Research Analyst at Bonanza)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
