Market trading guide: Cipla among 2 stock recommendations for Tuesday

The market traded within a narrow range on Monday, albeit with a positive bias, as investors continued to assess the progress of US–Iran negotiations. Overall sentiment remained constructive, supported by outperformance in utilities, banking, and healthcare sectors. This strength was largely driven by a more selective, sector- and stock-specific investment approach. However, concerns around the slow progress of the monsoon could lead to inflationary pressures, potentially impacting consumer sentiment and demand in agriculture-linked segments.
Analysts say while this may moderate near-term momentum, the broader outlook remains favourable, supported by a resilient earnings trajectory and continued policy backing, which underpin a constructive medium-term view.
Here are two stock recommendations for Friday

Cipla has exhibited a positive technical setup as the stock has witnessed a breakout from a short- term consolidation pattern, indicating renewed buying interest and a potential continuation of the upward trend. The price has moved above its key short-term moving averages and is attempting to reclaim its medium-term resistance levels, reflecting improving market sentiment. The formation of higher lows during recent corrections highlights strong accumulation and a gradual shift in momentum in favour of the bulls. Additionally, the RSI has moved above the 60 mark, signalling strengthening bullish momentum without entering overbought territory. The overall chart structure remains constructive and supports further upside potential in the upcoming sessions.
Virat Jagad, Sr Technical Research Analyst, at Bonanza Portfolio

Knowledge Marine & Engineering Works has exhibited a strong bullish setup as the stock has delivered a decisive breakout above its previous resistance zone, indicating the continuation of the primary uptrend. The stock is trading above all its key short-term, medium-term, and long-term moving averages, reflecting robust price strength and a favourable trend structure. The breakout is accompanied by strong bullish candles and increased volume participation, suggesting fresh accumulation and sustained buying interest. Additionally, the RSI has moved above the 60 mark, indicating strengthening momentum without entering extreme overbought territory. The overall technical structure remains positive and supports further upside potential in the upcoming sessions.
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)