By Riyank Arora
On Tuesday, the benchmark index opened with a gap down of around 97 points and rose nearly 125 points towards the closing. The Nifty ended 27 points higher, while the Sensex was down by 53 points. Among sectors, the Nifty Metal Index led the rally rising nearly 3% for the day and Media stocks did well. Private Banking stocks and FMCG witnessed profit booking in Tuesday’s session.
Technically, the market is trading around a resistance mark of 22,600 and is likely to take a dip towards 22,300 as we move forward.
Stock Recommendations:
AZAD ENGINEERING
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The stock has decisively broken out from an ascending triangle pattern, closing above its swing-high resistance level of 1465.00. The trading volume has surged to nearly three times its 30-day average, and the RSI (14) has crossed 75, indicating strong momentum. The stock is projected to reach a price target of Rs 1800 or higher. To manage risk, a strict stop-loss should be set at Rs 1420. Currently, the stock is trading at Rs 1544.20.
Tata Steel
The stock has successfully broken above its recent resistance level of Rs 172 on the daily charts. With the RSI surpassing 65 and a significant increase in trading volumes, the stock appears ready for an upward move towards Rs 190 and beyond. The favourable risk-reward ratio and robust technical setup make Tata Steel a strong buy at current levels. The stop-loss should be set at Rs 170.
Aditya Birla Fashion Retail
The stock has achieved a solid breakout above its recent resistance level of 276.95 and has successfully closed above it. With the RSI surpassing 70 and strong momentum, the trading volume has surged to nearly 3.5 times its 30-day average. The stock is likely to move towards potential targets of Rs 300 and higher. To manage risk effectively, a strict stop-loss should be set at Rs 272. At present, the stock is trading at Rs 281.40.