Market Trading Guide: IPCA Lab, Mangalam Cement among top stock recommendations for Monday

Indian benchmark equity indices closed higher on Friday, driven by a rebound in auto stocks, with valuations becoming more attractive after last week's sharp decline. The Nifty 50 rose by 0.27%, finishing at 23,813, while the BSE Sensex gained 0.29%, ending at 78,699.

Commenting on the market action, Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities, stated that the Nifty is showing a constrained sideways-to-bullish trend, with narrow price movements and repeated indecisive candlestick patterns indicating a lack of clear direction.

"The 23,900–24,000 range, supported by significant call writing, presents a strong resistance. On the other hand, the 200-DEMA and the crucial 23,700–23,600 zone, backed by substantial put writing, form a solid base for the bulls. A breakout above 24,000 could trigger a short-covering rally, pushing the index toward 24,500. Until then, a 'buy on dips' approach remains advisable. However, a breakdown below 23,500 could intensify bearish momentum, potentially pulling the index down to the 23,150–23,000 range, where strong put writing provides additional support," Dhameja explained.

Here are 2 stock recommendations for Monday:

Buy IPCA Laboratories at Rs 1,632.6

Target Price: Rs 1,715
Stop Loss: Rs 1,594
IPCALAB has broken out from an "Adam & Eve" pattern, signaling that buyers have overtaken the sellers. The surge in volume during the breakout demonstrates strong buying interest at current levels. Moreover, a bullish candlestick has formed precisely near the breakout zone (1610-1612), further reinforcing a bullish setup. From an indicator standpoint, the RSI (14) is currently at the 61 level, supporting the ongoing upward momentum.

Buy Mangalam Cement at Rs 981.10

Target Price: Rs 1,050
Stop Loss: Rs 956
On the daily timeframe, MANGLMCEM surged by 7.54%, forming a bullish candle and closing at a one-month high. The stock has successfully broken out of a rectangle pattern, indicating a strong structural foundation. The bullish trend is expected to remain intact as long as the price stays above the 956 level.

From a momentum perspective, the Relative Strength Index (RSI) is trending upward and remains above its moving average, signaling sustained positive momentum in the near term. This confluence of factors suggests a continuation of the upward trajectory.

(Analyst: 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)