The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a muted note on Friday, following mixed cues from global markets.
The choppy movement with weak bias continued in the domestic equities for the second consecutive session on Thursday and the overall market breadth was negative, echoing profit booking in selective stocks across the board.
Nifty 50 formed a long bear candle on the daily chart, that has broken slightly below the crucial support of ascending trend line at 24,150 levels during closing CAS session.
Nagaraj Shetti, AVP, Technical Research at HDFC Securities, noted that as per weekly timeframe chart, Nifty 50 is currently sliding down to the support of 24,000 levels.
“The underlying trend of Nifty 50 is choppy with weak bias. Any failure to sustain above the crucial 24,000 mark could trigger more weakness in the short term,” said Shetti.
According to him, the crucial overhead resistance for the Nifty 50 index is placed at 24,380.
Stocks To Buy
Nagaraj Shetti has recommended two stocks to buy for short-term today, August 28. He suggests buying these stocks for a timeframe of 2-3 weeks.
The technical stock picks for today are Redington and UNO Minda shares.
Redington | Buy | Target Price: Rs 387 | Stop Loss: Rs 343
Redington stock price has been in a sharp upside momentum over the last few months.
“Bullish patterns like higher tops and bottoms is intact on the daily and weekly timeframe charts. Volume has started to expand during upside in the stock price and daily/weekly RSI shows positive indication,” said Shetti.
He recommends buying Redington shares for a target price of Rs 387 apiece, while maintaining a stop loss of Rs 343.
UNO Minda | Buy | Target Price: Rs 1,375 | Stop Loss: Rs 1,225
After witnessing a sharp upmove in the early part of this month, UNO Minda share price has shifted into a range bound action in the last few weeks. The overall chart pattern indicates a formation of bullish flag, which is an uptrend continuation pattern. Volume and RSI indicate a positive outlook for the stock price ahead.
Shetti has a ‘Buy' call on UNO Minda shares, with a target price of Rs 1,375 and a stop loss of Rs 1,225.
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