Market Trading Guide: Buy Tata Consumer and Welspun Corp on Tuesday for gains up to 14%

Nifty ended sharply lower on Monday, extending its losing streak for the third day in a row amid significant selling across the board but more prominently in banks, auto and energy stocks.

Rupak De, Senior Technical Analyst at LKP Securities said the index has given a consolidation breakdown on the daily chart, suggesting a heightened risk of a larger bearish phase. It has slipped below both the 50 EMA and 20 EMA, confirming a weakening trend. The RSI, a momentum oscillator, is in a bearish crossover and indicates increasing downside pressure, he said. "Overall, the index appears vulnerable in the short term. Immediate support is placed at 23,700, below which the decline may accelerate further. On the upside, resistance is placed at 24,000, above which sentiment could improve," De added.

Here are 2 stocks to buy:


Buy Tata Consumer at Rs 1,270 | Upside: 14%

Stop Loss: Rs 1,210

Target: Rs 1,385

Tata Consumer Products is showing a strong bullish breakout from a long-term consolidation structure on the weekly timeframe, supported by a wide-range bullish candle and sustained buying pressure. Price action reflects a transition from range-bound movement to potential trend expansion, with higher lows consistently forming over the past several swings. The breakout above the descending trendline indicates improving long-term sentiment and renewed strength from buyers. Consecutive bullish candles near the breakout zone suggest strong follow-through participation rather than a temporary spike. RSI is trending firmly in bullish territory, reflecting strengthening momentum and improving relative strength. Volume activity has expanded during the breakout phase, indicating accumulation and institutional participation. Overall structure remains constructive for fresh positional buying with continuation bias.

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

Buy Welspun Corp at Rs 1,329 | Upside: 8%

Stop Loss: Rs 1,275

Target: Rs 1,435

Welspun Corp is exhibiting a strong bullish continuation on the weekly timeframe, with price action breaking out from a rising channel consolidation after sustained accumulation. The stock has formed a consistent structure of higher highs and higher lows, highlighting strong long-term trend strength. Recent bullish candles show sharp expansion in price range, indicating aggressive buying momentum and strong follow-through participation from buyers. The breakout near the upper boundary of the consolidation reflects renewed strength and continuation of the prevailing uptrend rather than a temporary spike. RSI is trending firmly in bullish territory, signaling sustained momentum and improving relative strength. Volume activity has expanded during the breakout phase, suggesting institutional accumulation and strong market participation. Overall, price action remains constructive for fresh positional buying with bullish continuation bias.

(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 Economic Times)