Amid fluctuating domestic equity markets, leading brokerage firms SMC Global Securities and SMIFS have identified specific stocks with strong technical indicators for potential short-term gains. Tata Consultancy Services (TCS), Engineers India Ltd, and Steel Authority of India Ltd (SAIL) are among their top picks, based on detailed chart analysis and bullish setups.
Steel Authority of India (SAIL): Structural Reversal Seen
SMC Global Securities highlights SAIL's powerful structural reversal on its daily chart. The stock recently broke out from a classic rounding bottom pattern, signaling accelerated bullish momentum. Multi-week consolidation indicated steady accumulation, with dip-buyers consistently defending price action. Having surged past key horizontal resistance at Rs 188–190, SAIL is now approaching the Rs 200 level.
Technical indicators, including a rising Relative Strength Index (RSI) and a bullish Moving Average Convergence Divergence (MACD) cross, further confirm its underlying strength. SMC Global Securities recommends accumulating SAIL on dips within the Rs 188-190 range, targeting Rs 215-220, with a stop loss below Rs 175.
Tata Consultancy Services (TCS): Bullish Setup and Retest
SMIFS observes a constructive bullish setup for Tata Consultancy Services. The stock has experienced a healthy upmove and is currently trading near a crucial breakout retest and reversal zone. After surpassing a significant resistance area, TCS has retraced in a controlled manner to retest this breakout level. Buying interest has re-emerged, suggesting the previous resistance is now acting as strong support.
This price action indicates accumulation rather than distribution, reinforcing a positive trend. The ongoing consolidation around the retest zone is considered a healthy pause after a recent rally, allowing the stock to absorb supply and build a stronger base. Momentum indicators are stabilizing and improving, supporting continued trend strength. SMIFS sets a target price of Rs 2,480 for TCS, maintaining a bullish view as long as the stock holds above Rs 2,135 on a closing basis.
Engineers India Ltd: Ascending Triangle Pattern
Engineers India Ltd is demonstrating a bullish market structure, consolidating within a classic ascending triangle pattern on its daily chart, according to SMC Global Securities. Following a rebound from dynamic moving average support around Rs 220, the stock has consistently formed higher lows, indicating increasing buyer strength.
Price action is currently pressing against key horizontal trend line resistance at the Rs 255–260 zone. An ascending trend line support, connecting recent swing lows, continues to compress prices upward. A decisive close above Rs 260 would confirm a bullish pattern breakout. SMC Global Securities suggests a conditional buy above the Rs 260 breakout level, targeting Rs 290-295, with a stop loss below Rs 240.
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.