Market Trading Guide: Buy NBCC and Dalmia Bharat on Monday for up to 11% gains. Here’s why
Indian equities extended losses for a second straight session as IT, financial and auto stocks weighed on benchmarks, pushing the Nifty below key short-term averages. Amid rising bearish momentum, analysts flagged 26,000 as a crucial support, while recommending NBCC and Dalmia Bharat on technical breakouts.
Indian benchmark indices ended with declines for the second day in a row, dragged by IT stocks, with selling pressure also seen in financials and auto pack. The Nifty continues to remain weak as the index has slipped below the 21 EMA on the hourly chart.
Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities, said that the slip below 21 EMA indicates a rise in bearish bets after two days of a rangebound phase in recent sessions. "The RSI is in a bearish crossover and trending lower, reflecting weakening momentum. During the session, the Nifty found support near the 26,000 level, where the 21 EMA is currently placed. In the near term, the trend may improve and retrace towards 26,200 and higher, provided 26,000 holds decisively. However, a sustained move below 26,000 could trigger further weakness in the market," De said.
Here are 2 stock recommendations for Monday:
Buy NBCC at Rs 122 | Upside: 11% | Stop Loss: Rs 114 | Target: Rs 130-135
NBCC (India) has delivered a strong bullish breakout, closing at Rs 122.06 with a sharp 5% upward move, confirming an upside resolution from the rising channel. Price is comfortably trading above key short- and medium-term moving averages, indicating trend strength, while RSI near 64 reflects healthy momentum without entering overbought territory. Volumes have expanded on the breakout, further validating buyer participation. The overall structure remains positive as long as the stock holds above the channel support and recent swing lows.
_(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)
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Buy Dalmia Bharat at Rs 2,160 | Upside: 7% | Stop Loss: Rs 2,070 | Target: Rs 2,280-2,320
Dalmia Bharat has witnessed a constructive rebound, closing at Rs 2,160.60 with a decisive bullish candle after holding above the 200-DMA and reclaiming key short-term EMAs, indicating a trend revival after the recent corrective phase. The RSI has moved up to around 66, reflecting strengthening momentum without being overbought, while improving price structure suggests a higher-low formation in the short term. A sustained move above the Rs 2,180–2,200 resistance zone can accelerate upside traction.
(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)