Indian equity markets experienced mild gains on Thursday, despite a volatile trading session, with rising crude oil prices influencing sentiment. As traders look ahead to inflation cues and the US Federal Reserve's monetary policy meeting next week, certain stocks are drawing significant attention.
Master Capital Services has highlighted One 97 Communications (Paytm), Power Grid Corporation of India Ltd, and Varun Beverages Ltd as top stock picks for traders. Vishnu Kant Upadhyay, AVP of Research & Advisory at Master Capital Services, provides detailed analysis, including target prices and stop-loss recommendations for Friday's trading session.
One 97 Communications (Paytm): Strong Uptrend Continues
Paytm, operating as One 97 Communications, has demonstrated a robust uptrend. The stock recently surpassed its previous swing high, indicating sustained buying interest. The price structure exhibits a positive trend with consistent formations of higher highs and higher lows. Corrective declines have consistently found support around its 21-day Exponential Moving Average (EMA), underscoring strong momentum and active dip buying.
Currently, Paytm trades above all its key short-term and long-term moving averages, reinforcing its bullish trajectory. The Relative Strength Index (RSI) is positioned around 65, suggesting healthy momentum with potential for further upward movement before entering an overbought zone.
- Recommendation: Buy
- Target Price: Rs 1,880-1,920
- Stop Loss: Rs 1,617
Varun Beverages: Base Formation and Potential Recovery
Varun Beverages Ltd is showing signs of forming a base within the Rs 390-400 range, a historically significant support area. Recent stabilization near these levels points to renewed buying interest following a prolonged corrective phase. The daily chart reveals a bullish RSI divergence, indicating improving underlying momentum despite recent price weakness.
A sustained hold above the Rs 390 mark could trigger a recovery towards the stock's short-term moving averages. Given this potential base formation, prices are anticipated to advance towards Rs 445 and subsequently Rs 460.
- Recommendation: Buy
- Target Price: Rs 445-460
- Stop Loss: Rs 380
Power Grid Corporation of India: Short-Term Reversal Signs
Power Grid Corporation of India has exhibited indications of a short-term trend reversal. The stock has broken out from a consolidation phase within a broader declining trend, suggesting a loss of momentum in the earlier downtrend. Price action now indicates the formation of a higher high, a bullish signal.
Furthermore, Power Grid has reclaimed its 21-day EMA, reflecting improved near-term price strength. Momentum indicators are supportive, with the RSI improving to 54, suggesting ample room for upward movement without becoming overbought.
- Recommendation: Buy
- Target Price: Rs 285-291
- Stop Loss: Rs 258
Disclaimer: This article provides stock market information for general informational purposes only and should not be considered investment advice. Readers are strongly advised to consult with a qualified financial advisor before making any investment decisions.