Market Trading Guide: Buy Blue Star and Kirloskar Oil on Thursday for up to 5% short term gains

Nifty ended with gains for the second day in a row on Wednesday, though IT stocks dealt a severe blow to the markets even as most other sectors pitched in continuing their Tuesday momentum aided by the India-US trade deal. The RSI stands at 54.61 and is in uptrend while remaining below the strong bullish zone.

Commenting on the current trends, Hitesh Tailor, Research Analyst at Choice Equity Broking said that index's gap-down opening and later a sideways trade indicates initial hesitation and lack of strong directional conviction among participants. But the index staged a recovery in the latter half of the session and finally closed around 25,776, reflecting buying interest at lower levels and underlying resilience, he said, placing immediate resistance at 25,900–25,950, while support is at 25,600–25,650.

Here are 2 stock recommendations for Thursday:

Buy Blue Star at Rs 1,840-1,860 | Upside: 5%

Stop-loss: Rs 1,800
Target: Rs 1,950

Blue Star is showing a strong bullish breakout on the daily chart, so buying in the Rs 1,840–Rs 1,860 zone looks favorable, especially on a mild pullback toward the breakout area that has now turned into support; the stop loss should be kept at Rs 1,800 to protect against a false breakout and a drop back below the structure base, while upside targets come in at Rs 1,950 as the first resistance zone and Rs 2,000 as the next psychological and technical

level, supported by strong volume expansion, price moving above key moving averages, and RSI holding above 60, indicating momentum is with the bulls, and traders can trail the stop loss higher once the first target is achieved to lock in gains while riding the trend.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy Kirloskar Oil a Rs 1,220-1,240 | Upside: 5%

Stop-loss: Rs 1,160
Target: Rs 1,300

Kirloskar Oil Engines is showing a fresh bullish breakout from a falling trend line on the daily chart, backed by an improving RSI near the 60 zone and price reclaiming short-term moving averages, indicating momentum is shifting upward. buying around Rs 1,220–Rs 1,240 looks favorable, preferably on a small dip toward the breakout zone, with a stop loss at Rs 1,160 below the recent swing support and moving average cluster to manage risk, while upside targets come at Rs 1,300 as the first resistance from the prior supply area and Rs 1,360 as the next level if momentum sustains, and traders can trail the stop higher once price sustains above Rs 1,300 to protect gains as the structure starts forming higher lows again.

(Drumil Vithlani, 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)