Stocks to Buy: Why BHEL, CDSL, and Borosil Are Top Picks in a Bullish Indian Stock Market | Stock Market News
The Nifty index has been rising and recently closed above the upper band of its rising channel, indicating strong market sentiment. The 24,200 level has been significant support. As long as the index stays above this level, the trend might remain strong. A drop below 24,200 could push the index down to 24,000-23,950. However, with the current bullish momentum, the index could continue to rise in the short term. A move above 24,400 might trigger a rally towards 24,600/24,800.
Bank Nifty
Bank Nifty had a small gain at the end of a volatile week, driven by movements in HDFC Bank, which heavily influences the index. The index closed above its critical short-term moving average and breakout point, suggesting a positive outlook. The overall sentiment is bullish as long as it stays above 52,000. A sustained trade above 52,750 could put the index on a high-growth path.
Stocks to Buy
- BHEL: Buy at ₹316 | Target price: ₹340 | Stop loss: ₹304 BHEL’s stock has broken out of a falling trendline, indicating increased optimism. The trend is positive, with the stock above the 50 EMA on the daily chart. A hidden positive divergence on the daily RSI suggests strong momentum. The stock could move towards 340, with support at 304.
- CDSL: Buy on dips around ₹2250 | Target price: ₹2600 | Stop loss: ₹2100 CDSL has been consolidating sideways after a sharp rise, which often precedes a bigger rally. The stock is strong as long as it stays above the 50 EMA (around 2100). Buying on dips with a stop loss of 2100 is recommended, with an upside target of 2600 in the short term.
- Borosil: Buy at ₹500-515 | Target price: ₹580 | Stop loss: ₹484 Borosil has been recovering after finding support at the 200 SMA on the weekly chart. The price strength is supported by increasing volume, and the weekly RSI shows a bullish crossover. The short-term trend is positive, with a potential to reach 580, and support at 484.
The author of this analysis is Rupak De, Senior Technical Analyst at LKP Securities.
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