Market Trading Guide: Cipla, Petronet LNG among 6 stock recommendations for Tuesday

Benchmark equity indices Sensex and Nifty ended lower on Monday after hitting their all-time high levels in early trade amid selling in blue-chip IT stocks and HDFC Bank. After breaching the 77,000-mark during the early trade, the 30-share BSE Sensex came under selling pressure at the fag-end of the session and ended 203.28 points lower at 76,490.08.

Halting its three-day rally, the NSE Nifty dipped 30.95 points to settle at 23,259.20.

"The short-term trend of Nifty continues to be positive amid high volatility. Having moved above the hurdle of 22,250 levels (mid part of Tuesday's long bear candle) recently, the Nifty could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term. Immediate support is at 22,640 levels," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Here are 6 stock recommendations for Tuesday:

Target Price: Rs 580-600
Stop Loss: Rs 520

The stock has broken out from a consolidation phase and is currently trading above its short-term 21-day moving average, indicating positive momentum. The RSI shows a bullish crossover, further supporting a potential uptrend.

(Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities)

Target Price: Rs 1,580-1,620
Stop Loss: Rs 1,480

The stock has experienced a W pattern breakout on the daily chart and is maintaining its position above a crucial short-term moving average. With the RSI indicating a bullish crossover, investors can consider buying on a slight pullback to retest the breakout resistance between 1,510 and 1,523.

(Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities)

Target Price: Rs 320-340
Stop Loss: Rs 280

The stock has given a breakout on the daily chart above its 20 DMA with volumes, indicating bullish momentum. The momentum indicator RSI is showing signs of reversal from the oversold territory, confirming the bullish setup. The stock has taken support multiple times at 295, indicating that bulls are active at lower levels and dips are being bought into.

(Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities)

Target Price: Rs 1,400-1,500
Stop Loss: Rs 1,130

The counter is coming out of a long consolidation with strong volume. The overall structure is very bullish as it trades above its all-important moving averages.

The pattern suggests an immediate target of Rs 1,400, while it has the potential to move further upside till 1,500 levels. On the downside, Rs 1,130 will act as an immediate support level. MACD supports the current strength whereas momentum indicator RSI is also positively poised.

(Pravesh Gour, Senior Technical Analyst, Swastika Investmart)

Target Price: 80
Stop Loss: Rs 72.75

The stock has experienced a notable breakout in a pattern called the Descending Triangle, suggesting a likely uptrend ahead. The increased trading volume in the stock indicates growing interest at the current price, which supports a positive outlook. Furthermore, the price of Paradeep is above important moving averages, indicating a consistent upward trend. This, coupled with a breakout in the RSI, suggests a strong upward movement and potential for further price increases.
(Drumil Vithlani, Technical Analyst, Bonanza Portfolio)

Target Price: 144
Stop Loss: Rs 130

Rico Auto stock has shown a bullish trend on the daily chart with the breakout of a downward sloping channel pattern. The stock closed near its high, forming a bullish candle. It's currently trading above both the 21-day and 50-day EMAs, indicating a positive trend. The increase in trading volume on buying days suggests that buyers are actively participating in the stock.

Additionally, the trend line breakout in the Relative Strength Index (RSI) supports the upside move, confirming the strength of the current trend and implying the potential for further price appreciation.

(Drumil Vithlani, Technical Analyst, Bonanza Portfolio)