Market Trading Guide: Buy Waaree Energies, Nykaa and 3 smallcap stocks on Friday. Up to 23% upside seen

Indian headline indices ended with sharp cuts on Thursday as US tariffs and monthly expiry weighed on markets. Bears remained at the helm as the index slipped below the 100-EMA on the daily chart, confirming a short-term bearish trend.Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty index broke down from its recent consolidation, signaling increasing weakness. However, a positive divergence is visible on the hourly chart after a steep fall, suggesting the possibility of a small bounce-back before further decline. “The market has shifted from a ‘buy on dips’ setup to a ‘sell on rise’ opportunity over the past few days. In the current fast-changing dynamics, staying light appears to be a prudent strategy. On the higher side, resistance is placed at 24,650/24,850, while on the lower side, support is seen at 24,480/24,300,” De said.Here are 5 stock recommendations for Friday:

Stop Loss: Rs 3,302 | Target: Rs 3,623WAAREEENER has staged a notable breakout from a Cup & Handle chart pattern on the daily timeframe, closing with a strong bullish candlestick backed by above-average 20-day volumes, signaling heightened buying interest. The stock is trading well above its 20, 50, 100, and 200-day EMAs, reinforcing the prevailing uptrend. Moreover, the RSI stands at 64.20 and is trending higher, pointing to strong bullish momentum and scope for further upside in the near term.(Drumil Vithlani - Technical Research Analyst)

Stop Loss: Rs 1,123 | Target: Rs 1,228GOODLUCK has broken out of a falling trend line on the daily timeframe, ending the session with a bullish candlestick accompanied by volumes well above the 20-day average, underscoring strong accumulation. The stock is trading decisively above its 20, 50, 100, and 200-day EMAs, reaffirming the ongoing uptrend. Meanwhile, the RSI stands at 62.53 and continues to edge higher, reflecting firm bullish momentum and scope for further gains.(Drumil Vithlani - Technical Research Analyst)

Stop Loss: Rs 55.55 | Target: Rs 74RattanIndia Enterprises is exhibiting a strong bullish structure as the stock recently rebounded from a well-defined support zone near Rs 50, gaining momentum and moving toward its recent swing high. The formation of a bullish candle supported by rising volumes indicates renewed buying interest and active participation. The RSI of 65.89 signals healthy momentum with scope for further upside.In the immediate term, support is seen at Rs 58, while a decisive breakout above Rs 62.50 would reinforce bullish conviction and potentially open the way toward Rs 70 and Rs 74. A stop-loss is suggested near Rs 55.55.(Amruta Shinde - Research Analyst, Choice Broking)

Stop Loss: Rs 2,060 | Target: Rs 2,450Metropolis has rebounded decisively from the Rs 2,100 zone, which coincides with the 20-day EMA, and is forming a higher high–higher low structure along with a rounding bottom pattern. These technical indicators suggest the continuation of a sustained uptrend.A decisive close above the Rs 2,200–2,210 range would further validate the breakout and confirm renewed bullish strength. Support is placed at Rs 2,100, with a suggested stop loss at Rs 2,060. The target is Rs 2,450 in the near term.(Amruta Shinde - Research Analyst, Choice Broking)

Stop Loss: Rs 223 | Target: Rs 257Nykaa is currently exhibiting a bullish trend as the stock has recently broken out of a prolonged rounding bottom pattern, signaling a potential reversal from a key support zone. A decisive close above the major resistance level of Rs 230, accompanied by a surge in volumes, reflects strong buying interest and validates the breakout. With this momentum, the stock appears well-positioned for further gains in the short term, with an immediate target of Rs 257.If the stock sustains above Rs 240, it could offer a favorable entry point for long positions, while Rs 228 may act as support in the event of minor pullbacks. A stop-loss near Rs 223 is recommended.(Amruta Shinde - Research Analyst, Choice Broking)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)