Amidst a volatile Indian equity market influenced by rising crude oil prices and geopolitical concerns, select stocks are drawing significant attention from traders. While the BSE Sensex and NSE Nifty50 experienced declines, analysts from Master Capital Services have identified three key stocks with strong technical setups for potential gains.
Vishnu Kant Upadhyay, AVP of Research at Master Capital Services, provides insights and recommendations for Hero MotoCorp, Manappuram Finance, and Mahindra & Mahindra (M&M) ahead of Friday's trading session.
Hero MotoCorp Shows Bullish Reversal
Hero MotoCorp Ltd has confirmed a bullish trend reversal. This follows a breakout from a prolonged consolidation phase that developed after a rounding bottom formation. The breakout is supported by a significant surge in trading volumes, indicating renewed buying interest.
The stock has successfully reclaimed all its key moving averages, strengthening its technical position. Price action now shows a consistent pattern of higher highs and higher lows, suggesting robust momentum. The overall chart structure points to a continuation of this uptrend in the upcoming sessions.
- Recommendation: Buy
- Target Price: Rs 5,500-5,600
- Stop Loss: Rs 4,900
Manappuram Finance Hits All-Time High
Manappuram Finance has extended its long-term uptrend, registering a fresh all-time high above the Rs 345 mark. This surge is backed by strong trading volumes. The stock continues to display a robust price structure, characterized by a consistent pattern of higher highs and higher lows.
Every corrective phase for Manappuram Finance has found reliable support near the 21-day Exponential Moving Average (EMA). It trades comfortably above all its key moving averages, underscoring sustained bullish momentum. The Relative Strength Index (RSI) at 64 further reflects strengthening momentum, indicating the potential for the ongoing uptrend to continue.
- Recommendation: Buy
- Target Price: Rs 378-385
- Stop Loss: Rs 331
M&M Stages Strong Recovery
Mahindra & Mahindra Ltd (M&M) has staged a strong recovery after repeatedly finding support around the Rs 2,900-2,920 zone. This established a solid base following an earlier downtrend. The stock has now broken out of a rising channel, signaling strengthening bullish momentum.
M&M has reclaimed all its key moving averages, though it currently faces minor resistance near the 200-day EMA. The formation of higher highs and higher lows reflects a healthy short-term uptrend. An RSI reading of 59 suggests improving momentum with scope for further upside.
- Recommendation: Buy
- Target Price: Rs 3,410-3,500
- Stop Loss: Rs 3,080
Disclaimer: Stock market recommendations are for informational purposes only and should not be considered investment advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions.