As Indian equity markets posted gains, buoyed by easing geopolitical tensions and inflation concerns, an analyst from Master Capital Services has highlighted three stocks for traders to consider. Vishnu Kant Upadhyay, AVP of Research at Master Capital Services, provided his insights on Delhivery, Force Motors, and Dr Reddy's Laboratories ahead of Friday's trading session.
Delhivery: Technical Breakout Signals Bullish Reversal
Delhivery Ltd has demonstrated a significant technical breakout, closing decisively above its Rs 480 multi-year resistance zone. This move was supported by a sharp surge in trading volumes, indicating strong institutional participation. According to Upadhyay, this action also completes a long-term inverse head and shoulders pattern, reinforcing a bullish reversal on the higher timeframe.
- Recommendation: Buy
- Target Price: Rs 545-560
- Stop Loss: Rs 480
The stock is currently trading comfortably above its 21, 55, 100, and 200 Exponential Moving Averages (EMAs), reflecting strength across multiple timeframes. A well-defined higher high, higher low structure further validates the prevailing uptrend, with the breakout suggesting sustained bullish momentum and potential for continued upside.
Force Motors: Confirmed Bullish Reversal After Consolidation
Force Motors Ltd has confirmed a bullish reversal following a decisive breakout above a declining trendline, accompanied by a sharp increase in volumes. Prior to this breakout, the stock consolidated for several weeks around a strong Rs 17,000 support zone, where a cluster of key moving averages indicated sustained accumulation.
- Recommendation: Buy
- Target Price: Rs 21,000-22,000
- Stop Loss: Rs 18,100
The breakout has allowed Force Motors to reclaim its short-term EMAs and form a fresh higher high, signalling an improving price structure. The Relative Strength Index (RSI) at 55 reflects strengthening momentum with room for further upside, reinforcing the continuation of the emerging bullish trend.
Dr Reddy's Laboratories: Entering Fresh Bullish Phase
Dr Reddy's Labs has entered a fresh bullish phase after breaking above the Rs 1,360 resistance on a closing basis, following more than a year of consolidation. This move signals the resumption of its primary uptrend. Following the breakout, the stock experienced a healthy pullback towards the earlier resistance zone of Rs 1,330-1,360, which is now acting as support.
- Recommendation: Buy
- Target Price: Rs 1,420-1,440
- Stop Loss: Rs 1,290
The formation of a near 'doji' candle at this level indicates buying interest on declines. Dr Reddy's continues to trade above all its key moving averages, while an RSI of 59 reflects strengthening momentum. The overall chart structure remains robust, favouring further upside for the pharmaceutical stock.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.