Market Trading Guide: Blue Star among 3 stock recommendations for Wednesday

Indian frontline indices conceded most of their morning gains on Tuesday to end flat. The bias was positive as they recorded their seventh consecutive gains today, thanks to yet another strong show by IT stocks even as other sectors incurred losses. Auto, consumer, metals and realty collectively dragged the markets. The BSE Sensex gained 32.81 points or 0.04% to 78,017.19, while the Nifty climbed 10.30 points or 0.04% to end the day at 23,668.65.

Commenting on the day's action, Rupak De, Senior Technical Analyst at LKP Securities said that Nifty faced resistance at the previous swing high, leading to a volatile session before closing slightly lower. "On the downside, support is observed around 23,300, which is a congestion level, with the 100-EMA also placed near this level. As long as the Nifty remains above 23,300, we anticipate a consolidation phase within a broader range of 23,300 to 23,800. Immediate support is placed at 23,600, and a decisive drop below this level could drive the index toward 23,300. On the upside, resistance is at 23,800, and a breakout above this level may resume the rally," De said.
Here are 3 stock recommendations for Wednesday:

Target: Rs 631
Stop Loss: Rs 586
The daily chart of Nippon Life India Asset Management Ltd showcases a rounding bottom formation, signaling a bullish reversal. The stock closed at ₹601, gaining +10.75 points (+1.82%), with three consecutive bullish candles breaking above all key EMAs (20, 50, 100, 200), confirming strength. RSI stands at 64.83, reflecting positive momentum without being overbought, while MACD has provided a bullish crossover, reinforcing upward potential. A buy

recommendation is justified above Rs 601, with a target of Rs 631 and a stop-loss at Rs 586. A breakout above the 200 EMA at Rs 611 could fuel further upside, making this setup technically favourable for short-term gains.
(Harshita Darak, Technical Research Analyst at Bonanza)

Target: Rs 435
Stop Loss: Rs 403
Time Technoplast Ltd has formed a bullish breakout from a falling wedge pattern, signaling a trend reversal. The stock closed at ₹413.70, gaining ₹11.30 (+2.81%) with three consecutive bullish candles, decisively moving above all major EMAs (20, 50, 100, 200), confirming upward momentum. RSI stands strong at 60, indicating increasing bullish strength, while the MACD has crossed into positive territory, supporting the breakout. A buy recommendation is suggested above Rs 414, targeting Rs 435, with a stop-loss at Rs 403. The stock’s strong volume surge during the breakout enhances the conviction for a continued upward move. Holding above the Rs 400 mark remains crucial for sustained bullish momentum.

(Harshita Darak, Technical Research Analyst at Bonanza)

Target: Rs 2,325
Stop Loss: Rs 2,065
The stock price is in a strong upside momentum over the last many months. We observe a bullish pattern like higher tops and bottoms over the period of time. Currently in an attempt of upside breakout of a few weeks range and also down trend line at Rs 2180-2200 levels. Volume and RSI patterns are indicating positive bias for the stock price ahead. One may look to buy BLUESTARCO at Rs 2,155 and add more on dips down to Rs 2,110 and wait for the upside target of Rs 2,325 in the next 3-5 weeks. Place a stop loss of Rs 2,065.
(Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)