Market Trading Guide: Buy Data Patterns and Finolex Cables on Friday for short term gains

Synopsis

The Nifty ended flat as financial stocks dragged despite gains in auto and consumer sectors. Technical indicators signal continued weakness, with resistance at 25,550–25,600 and downside risk toward 25,300. Analysts recommend buying Data Patterns and Finolex Cables on bullish breakouts.

Nifty ended largely unchanged on Thursday as selling pressure in financial stocks dragged markets despite buying trends in auto and consumer stocks. The index has consistently failed to reclaim the 21-EMA on the daily chart exhibiting an overall lack of strength.

Decoding the charts, Rupak De, Senior Technical Analyst at LKP Securities said the RSI is in a bearish crossover, indicating weakening momentum. "The sentiment is likely to remain weak in the near term, with a possibility of falling towards 25,300. On the higher end, resistance is placed at 25,550–25,600," he added.

Here are 2 stock recommendations for Friday:

Buy Data Patterns at Rs 3,244 | Upside: 10%

Stop Loss: Rs 3,045

Target: Rs 3,560

Data Patterns (India) Limited has delivered a decisive breakout above the 3,200 resistance zone, marking a fresh 52-week high and signalling continuation of its broader uptrend. The breakout is supported by expanding volumes, indicating strong and genuine buying interest. The stock is trading above its key short- and medium-term EMAs, which are positively aligned, while the 200 EMA trends upward, confirming long-term strength. RSI near 73 reflects strong momentum, though slightly overbought, suggesting powerful bullish sentiment.

(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

Buy Finolex Cables at Rs 874 | Upside: 10%

Stop Loss: Rs 828

Target: Rs 965

Finolex Cables Limited is showing early signs of a bullish reversal after breaking above the 835–840 resistance zone with improved price momentum. The stock has formed a higher low near 760 and is now trading above its short-term EMAs, indicating strengthening near-term trend. RSI around 70 reflects strong momentum and buying interest, while recent volume expansion suggests accumulation at lower levels. Although the stock remains below its long-term 200 EMA.

(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

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

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