Stocks to buy: GRSE, KEI Industries and IndiGo on investors’ radar

Rallying for the fourth straight session, stock market benchmarks Sensex and Nifty surged over 1 per cent on Thursday, powered by across-the-board buying amid a mixed trend in global equities

Stocks that were in focus include names like GRSE, which rose 4.5% and KEI Industries, which declined 12% and IndiGo, whose shares gained 2.2% on Thursday.

Here's what Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.

GRSE

Garden Reach Shipbuilders and Engineers Ltd (GRSE) surged 4.73% to Rs 1,724, delivering a decisive breakout above a long-term downtrend line, backed by heavy volumes. The stock has reclaimed key moving averages, signaling bullish momentum. The RSI at 72 suggests strong buying interest, while MACD is trending positively.

With increasing government focus on defense modernization and recent contract wins in the shipbuilding sector, GRSE is poised for further upside. Traders can eye Rs 2,000 as the next target, with support placed below Rs 1,550. The breakout aligns with renewed strength in the defense sector, where recent policy initiatives and order inflows are driving optimism.

Given its strong breakout above the downtrend line and a move past crucial EMAs (50, 100, and 200), GRSE is exhibiting a robust bullish structure. The rising RSI and bullish MACD crossover further support the momentum. A sustained close above this level could trigger further upside toward Rs 2,000, with Rs 1,550 acting as key support. Traders should watch for continued volume expansion to validate the breakout and confirm strength in the ongoing trend.

KEI Industries

KEI Industries Ltd plunged 12.38% to Rs 2,876.75, breaking key support levels on heavy volumes. The stock has decisively breached its 200-day EMA (Rs 3,807) and remains below all crucial moving averages, signaling continued weakness. The RSI at 34 suggests bearish momentum, while the MACD remains deeply negative, confirming the downtrend.

The breakdown was triggered by heightened competition concerns after Adani's entry into the cable and wire segment, adding pressure to KEI’s outlook. The stock attempted a bounce but failed to sustain, indicating selling pressure at higher levels.

Technically, the trend remains negative, and any rise towards Rs 3,100-3,200 may be met with further selling. Until KEI regains Rs 3,250 on a closing basis, the stock remains a ‘sell on rise’ candidate. Traders should watch for continued volume spikes, as further downside toward Rs 2,700-2,600 appears likely if weakness persists.

IndiGo

InterGlobe Aviation (IndiGo) has given a strong breakout, backed by rising volumes, signaling further upside potential. The stock has decisively moved above key resistance levels and is trading well above its 20-day , 50-day, 100-day, and 200-day Exponential Moving Averages , indicating a strong bullish trend.

Momentum indicators support this breakout, with the MACD showing positive divergence and strength building up. The RSI at 76.60 is in overbought territory, reflecting strong buying interest. The stock has cleared a crucial resistance zone, and with sustained momentum, the next upside target is set at 5,650, while support lies at 4,850, which serves as a stop-loss.

Fundamentally, IndiGo remains in focus due to positive developments in the aviation sector. As long as the stock holds above key EMAs, the bullish bias remains intact, making it a buy-on-dips candidate.

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