Stocks to buy: Here’s why investors should bet on L&T Finance Holdings, GNFC, Rail Vikas Nigam

After relentless selling over the past few days, Nifty temporarily halted its decline due to an oversold chart setting. However, the index closed well below the key breakdown level of 19,250. As long as it stays below 19250, the market is likely to continue selling on the upside. On the downside, if the index falls below his 18800, we can expect weakness to return. This is because the put writer has a sizeable position at his 18800 and is likely to put immediate support at 19000, defending the Nifty.

After the consolidation breakdown on the daily chart, Bank Nifty experienced a correction of 2000 points in a short period of time. The index appears to be slightly oversold, leading to Friday’s pullback. However, market conditions remain strongly bearish, and if the stock turns upward, it may still be exposed to selling pressure. On the upside, 43,000 could be a key resistance level as call writers have established significant positions there. Support he is observed at 42500 and put writers have a strong presence.

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1) Purchase GNFC 665 TGT 700 SL 642

GNFC stock has shown a strong comeback, featuring a long-legged Doji candle testing previous breakout resistance. Notably, subsequent candlesticks have become significantly more bullish, indicating a strong comeback for the bulls. The stock is currently trading above its 20-day EMA and has an RSI of 62, indicating strong momentum. Consider establishing a long position in the stock within the 660-665 range while setting a hard stop loss at 642. In an uptrend, we aim for a target price of 700.

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2) Purchase L&TFH 137 TGT 155 SL 131

The stock is following a high-low pattern on the daily chart, which is a bullish sign. Positive patterns are accompanied by good trading volumes and indicate strength in price trends. The Relative Strength Index (RSI) indicator on the daily chart is in the positive zone, confirming the bullish trend. Consider establishing a long position in the stock within the 136-137 range while setting a hard stop loss at 131. In an uptrend, we aim for a target price of 155.

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3) Buy RVNL 157 TGT 175 SL 150

The stock has reversed from its previous demand zone, indicating that the upward trend may continue. Additionally, the price broke above the 50-day simple moving average (50SMA) on the daily chart. Consider establishing a long position in the stock within the 155-157 range while setting a hard stop loss at 150. In an uptrend, we aim for a target price of 175.

Author Rupak De is a senior technical analyst at LKP Securities.

Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.