Market Trading Guide: Buy HAL and Solar Industries on Thursday for up to 10% potential upside

Nifty recorded their second successive gains on Wednesday, staging a strong comeback aided by buying action in financials, metal and energy sectors. The index continues to hold above its long-term 200-DMA at 25,170, which is likely to act as a key support.

Commenting on the current trends, Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking said the Nifty saw a follow-up move and formed a bullish candle on the daily chart. "The overall structure remains positive, with scope for the up-move to extend towards the 25,500–25,600 zone, where the immediate hurdle of the 100-DMA is placed at 25,600 levels. The RSI has rebounded from oversold levels and is trending higher, indicating improving momentum. We expect Nifty to trade in a broader range of 25,200–25,600 in the short term," De said.

Here are 2 stock recommendations for Thursday:


Buy HAL at Rs 4,624 | Upside: 7%

Stop Loss: Rs 4,450

Target: Rs 4,970

HAL has bounced strongly from the 0.5 Fibonacci retracement level and, after a healthy consolidation, has delivered a breakout with strong volume, indicating renewed buying interest. The stock is trading above all major EMAs (20, 50, 100, and 200), confirming short-term and long-term bullish sentiment. Momentum is also supportive, with RSI at 60.86, breaking above its 14-period average of 50.02, suggesting bullish momentum continuation and scope for further upside.

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

Buy Solar Industries at Rs 13,916 | Upside: 10%

Stop Loss: Rs 13,250

Target: Rs 15,250

Solar Industries India (SOLARIND) has broken out of a falling wedge pattern and, after a healthy pullback, has resumed its upward move with strong volume, confirming buying strength. The stock is now trading above all major EMAs (20, 50, 100, and 200), with a decisive close above the 200 EMA, signaling short-term and long-term bullish momentum. Momentum indicators remain supportive, as RSI stands at 65.73, comfortably above its 14-period average of 54.01, suggesting continued upside potential.

(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)