Market Trading Guide: Dr Reddy’s Lab among 4 stock recommendations for Thursday

Market Trading Guide: Dr Reddy’s Lab among 4 stock recommendations for Thursday

The Indian markets fell for the sixth consecutive session on Wednesday, pulled down by weak global cues and a falling rupee. S&P BSE Sensex fell 509 points to settle at 56,598, while Nifty50 closed below the 16,900 level.

“After making several attempts to clear the 17,000 mark in today’s session, the Nifty finally closed at day’s low near 16,800 mark. This indicates that the bears are not willing to give up soon. During the process, Nifty has failed to sustain above its 200 DEMA and closed below the same,” said Mehul Kothari, AVP -Technical Research, Anand Rathi.

“For the coming session, a breach of 16,800 might bring further pessimism in the market since that would trigger short covering in 16,800 strike PE options. On the upside, 17,000 on a closing basis would be an immediate resistance for the coming sessions,” he added.

Here are 4 stocks recommendation for Thursday:

Buy Biocon near Rs 283

2/5

Buy Biocon near Rs 283

Target Price: Rs 300
Stop Loss: Rs 273

The stock has found support near Rs 275, which is the placement of a falling trend line. In addition, we are witnessing a hammer kind of formation at that support.

(Mehul Kothari, AVP – Technical Research, Anand Rathi)

Buy Carborundum Universal near Rs 830

3/5

Buy Carborundum Universal near Rs 830

Target Price: Rs 890
Stop Loss: Rs 800

On the daily chart, we are witnessing a double-bottom kind of formation near the Rs 800 mark. This formation occurred at the placement of 200 DSMA.

(Mehul Kothari, AVP – Technical Research, Anand Rathi)

iStock

Buy Dr Reddy's Lab at Rs 4,250

4/5

Buy Dr Reddy’s Lab at Rs 4,250

Target Price: Rs 4,500-4,600
Stop Loss: Rs 4,000

The stock on the daily chart has been consolidating in a broad range between 4,000-4,300 levels. The counter has been showing signs of strong buying for the past few days, with a bullish candlestick pattern confirming the base formation. The stock is on the verge of a breakout from a falling trend line which will accelerate the move on the upside.

(Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities)

Agencies

Sell Max Financial Services at Rs 755

5/5

Sell Max Financial Services at Rs 755

Target Price: Rs 710-700
Stop Loss: Rs 790
The stock on the larger time frame was trading in a strong downtrend with lower high and lower low formations intact. The counter in today’s trading session has given a fresh breakdown from a sideways trend, confirming the bearishness in the near term. The MACD also gave a negative crossover below the zero line, confirming the sell signal.

(Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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