Leading domestic brokerage firms, including Choice Institutional Equities and BP Equities, have recommended several largecap stocks for short-term trading, citing robust technical indicators. These picks—Reliance Industries Ltd (RIL), DLF, and HCL Technologies Ltd—are highlighted for their potential to deliver strong gains in the current volatile market environment. Here’s a breakdown of their analysis and recommendations:
DLF: Bullish Structure Maintained
BP Equities notes that DLF Ltd has sustained a constructive bullish structure, recovering significantly from its April lows and consistently forming higher-high and higher-low patterns. The stock is currently consolidating between Rs 660 and Rs 680, suggesting absorption of supply at elevated levels. A decisive breakout above Rs 680, supported by increased trading volume, could trigger a further upward movement. The rising trendline from April continues to offer dynamic support, reinforcing the bullish outlook, with Rs 650–635 identified as a key support band.
- Recommendation: Buy
- Target Price: Rs 775
- Stop Loss: Rs 619
HCL Technologies: Signs of Trend Reversal
Choice Institutional Equities observes early signs of a potential trend reversal for HCL Technologies. The stock has rebounded sharply from a strong longer-term demand zone, aligning with the lower trendline of a parallel channel on the weekly chart. This indicates renewed buying interest and improved price stability. Momentum is also favorable, with the Relative Strength Index (RSI) reversing from oversold territory and moving above the midpoint to 56.51, signaling strengthening underlying support. Buying is recommended around Rs 1,368, with additional accumulation on dips towards Rs 1,325.
- Recommendation: Buy
- Target Price: Rs 1,500–1,570
- Stop Loss: Rs 1,265
Reliance Industries: Short-Term Reversal
BP Equities indicates that Reliance Industries is showing signs of a short-term trend reversal after finding support. The stock has established a higher-low structure from this support area and has recently moved above its short-term moving average cloud, suggesting improving buying interest. The recovery from the Rs 1,280–1,300 zone implies buyers are gradually gaining control. While approaching an immediate supply zone around Rs 1,335–Rs 1,350, a sustained breakout above Rs 1,350 could open the path towards major resistance at Rs 1,466. The Moving Average Convergence Divergence (MACD) remains positive, favoring an upward momentum.
- Recommendation: Buy (in the range of Rs 1,320-1,330)
- Target Price: Rs 1,530
- Stop Loss: Rs 1,240
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.