Market Trading Guide: Buy Coforge and NBCC on Monday for near-term gains of up to 7%

Synopsis

The Nifty ended sharply lower amid escalating US-Iran tensions, rupee weakness and heavy selling in financial stocks, slipping below the 50-day EMA and signalling renewed weakness. Analysts expect further downside if the index remains below 24,200, while Coforge and NBCC (India) are seen as attractive short-term trading opportunities.

The Nifty ended sharply lower on Friday amid a host of negative triggers, including fresh escalation between the US and Iran, rupee depreciation, and significant selling in the financial stocks. The index has slipped back below the 50 EMA after briefly staying above it, indicating renewed weakness in sentiment.

Rupak De, Senior Technical Analyst at LKP Securities, said the mood has further deteriorated as the index also moved below the 50-day EMA on the intraday timeframe. In addition, the RSI has re-entered a bearish crossover on the daily chart, reflecting weakening momentum, he said.

"Overall, the sentiment appears weak, with heavy call writing visible around the 24,200 strike. If the Nifty sustains below 24,200 on Monday, the index could witness further correction towards the 24,050–24,000 zone. On the other hand, a move back above 24,200 may trigger a near-term recovery rally towards 24,350–24,400," De said.

Here are the 2 stocks to buy:

Buy Coforge at Rs 1,368 | Upside: 7% | Stop Loss: Rs 1,320 | Target: Rs 1,420-1,460

(Virat Jagad, Sr. Technical Research Analyst, at Bonanza Portfolio)

Buy NBCC (India) at Rs 101 | Upside: 7% | Stop Loss: Rs 97-98 | Target: Rs 104-108

(Virat Jagad, Sr. Technical Research Analyst, at Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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