Indian benchmark ended sharply lower on Friday as the Sebi's deadline over FIIs disclosure norm inched closer. Mixed global sentiment and rich valuations also kept the buying sentiment away. BSE Sensex crashed 1,017.23 points or 1.24 per cent, to end the session at 81,183.93. NSE's Nifty50 tanked 292.95 points, or 1.17 per cent, to close at 24,852.15 for the day.
Some buzzing stocks including Asian Paints Ltd, FSN E-Commerce Ventures Ltd (Nykaa) and Laxmi Organic Industries Ltd are likely to remain under the spotlight of traders for the session today. Here is what various brokerage firms have to say on these stocks ahead of Monday's trading session:
Laxmi Organic Industries | Buy | Target Price: Rs 336-345 | Stop Loss: Rs 273
Laxmi Organics demonstrated a decisive breakout above the descending triangle pattern at Rs 290, confirmed by a robust bullish candle on the weekly chart, signaling the beginning of a medium-term uptrend. The stock has broken above the weekly upper Bollinger Band. This breach generates a buy signal, indicating potential upward momentum. The stock's ability to maintain levels above key short and medium-term moving averages (20, 50, 100, and 200 days) signals a positive bias in its trajectory. The weekly RSI is holding above its reference line indicating a positive bias. The weekly RSI shows a bullish divergence, with the RSI recording higher highs and lows while the price exhibits similar highs and lows, generating a buy signal. Following the breakout from the pattern, the stock is expected to rally towards previous swing highs, with targets set at Rs 336-345.
Recommended by: Axis Securities
Asian Paints | Buy | Target Price: Rs 3,562-3,725 | Stop Loss: Rs 3,100
Asian Paints has formed a symmetrical triangle pattern on the monthly chart with significant volume, indicating a strong bullish trend. The stock has broken out of a rounding bottom pattern, which further indicates strength. The Relative Strength Index (RSI) is currently at 56.9, suggesting an upward trajectory and growing buying momentum. A breakout above Rs 3,250 could potentially drive the stock towards the Rs 3,562 and Rs 3,725 levels, with immediate resistance at Rs 3,400. On the downside, the critical support levels are at Rs 3,100. A prudent strategy would involve considering buying opportunities on dips around the Rs 3,175 level. However, it is essential to implement prudent risk management strategies to navigate potential market fluctuations effectively.
Recommended by: Choice Broking
FSN E-Commerce Ventures | Buy | Target Price: Rs 250 | Stop Loss: Rs 192
Nykaa showed potential signs of bottoming out in the previous year following a steep correction of 73 per cent from near to its listing week high. After hitting the rock-bottom near the levels of 115, the stock underwent a potential sideway trend. The phase not only indicated that the downside was losing its momentum, but buyers and sellers started to move into equilibrium, where previously the sellers were far stronger. The formation of a higher high and higher low in the basing area further indicates gradual smart money participation. The stock now progressively attempts to swing out of its base into a more dynamic stage. The stock has observed improving EPS strength, relative strength compared to the 50 index and buyers demand which is a positive sign. Following a 25 per cent move from the August lows, the price has retraced to its short term moving averages, offering immediate support. This also offers a lower risk and a higher rewarding opportunity. We recommend buying NYKAA for the target price of Rs 250 with a protective stop at Rs 192.
Recommended by: BP Equities