Market Trading Guide: Buy Hindustan Copper and Shriram Finance on Monday for up to 6% upside. Here’s why

Nifty ended its four-day losing streak on Friday aided by strong buying action in auto, energy and financial stocks. The Nifty has witnessed a breakout from a falling wedge pattern, indicating improving market sentiment.

Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities, said the index reclaimed the 21-day EMA on the daily chart. "After finding support near the 50-day EMA, the index recovered towards the 26,000 mark. Going forward, 26,000 will be a key level to watch; a decisive move above this level could propel the index towards 26,300. On the downside, immediate support is placed at 25,900, which is likely to act as the first line of defense for the Nifty," De said.

Here are 2 stock recommendations for Monday:

Target: Rs 410

Stop Loss: Rs 375

Hindustan Copper Ltd has exhibited a breakout from a Cup and handle pattern on the Weekly time frame. There has been a consistent rise in trading volume, which signifies growing interest from buyers. Additionally, momentum Indicator RSI is trading above 70 level supporting the uptrend. On the directional front DI+ is trading above DI- indicating positive trend whereas ADX trading above 40 indicates strength in the move.

(Virat Jagad, Technical Research Analyst, Bonanza Portfolio)

Target: Rs 960

Stop Loss: Rs 870

After a strong run, Shriram Finance Ltd was consolidating between 830 to 875. Where, on the daily chart, we've seen a breakout of the pennant formation. This tells us that the bulls are in charge of security. On the indicator front, the MACD is showing positive crossover, which confirms the buying interest. We could see further buying interest in Shriram Finance Ltd till the Rs. 960 marks, with immediate support of Rs. 870. Another buying pressure would have been possible if it had managed to hold above the threshold.

(Virat Jagad, 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)