Two stock recommendations by MarketSmith India:
Buy: BEML Ltd (current price: ₹4,471)
Why it’s recommended: Strong order book from defence, mining, and rail sectors, government focus on infrastructure and defence indigenization, diversified product portfolio, robust export potential, and global partnerships
Key metrics: P/E: 60.74 | 52-week high: ₹4,874.80 | Volume: ₹380.18 crore
Technical analysis: Trendline breakout
Risk factors: High dependence on government contracts and policies, cyclical demand from mining and construction sectors, margin volatility due to raw material price fluctuations, and disinvestment uncertainty, and regulatory risks
Buy: ₹4,400-4,500
Target price: ₹5,150 in two to three months
Stop loss: ₹4,150
Buy: Coromandel International Ltd (current price: ₹2,198)
Why it’s recommended: Strong market leadership in fertilizers and crop protection, diversified product portfolio across agri-inputs and nutrients, strategic investments in agri-tech and bio-products, and focus on sustainability and green initiatives
Key metrics: P/E: 32 | 52-week high: ₹2,718.90 | Volume: ₹45.98 crore
Technical analysis: Bounce back from its 200-DMA
Risk factors: Dependence on monsoon and seasonal demand, regulatory risks and changes in fertilizer subsidy policies, intense competition from domestic and global players, fluctuations in global commodity and forex markets
Buy at: ₹2,180–2,120
Target price: ₹2,440 in two to three months
Stop loss: ₹ 2,090
Nifty 50: How the benchmark index performed
The Nifty 50 opened on a strong note and maintained its upward momentum throughout the session, ending firmly in positive territory. The index formed a bullish candle with a higher high and higher low price structure on the daily chart, reaffirming the continuation of its uptrend. Trading comfortably above all its key moving averages, the Nifty reflects a well-established bullish setup, supported by robust market breadth and sustained buying interest in large-cap sectors, such as banking, autos, and infrastructure. The overall sentiment remains optimistic, suggesting further upside potential as investors continue to favour quality stocks amid improving economic indicators.
The index is exhibiting notable strength, with the RSI improving to 60, reflecting growing bullish momentum. Additionally, the MACD formed a positive crossover and continues to trend well above its central line, indicating sustained buying interest and strong upward momentum. These technical signals suggest that market sentiment remains constructive, with potential for further upside as bulls maintain control over near-term price action.
According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” is at four.
The index closed on a positive note as investor sentiment improved, driven by renewed expectations of a potential U.S. Federal Reserve rate cut, which typically benefits emerging markets such as India. The prevailing optimism and sustained buying interest could support the index’s upward movement toward 25,350-25,500 in the near term. However, any decisive close below 25,050 may trigger renewed selling pressure, potentially pushing the index lower toward 24,900-24,800. Overall, the market sentiment remains cautiously optimistic, with momentum likely to hinge on global cues and domestic earnings performance.
How did the Nifty Bank perform yesterday?
The Nifty Bank opened on a firm note and extended its upward momentum throughout the session, supported by strong buying in leading private and PSU banks. The index formed a bullish candle on the daily chart, with a higher high and higher low price structure, signalling the continuation of the positive trend. During the day, it opened at 56,528.95, hit an intraday high of 56,922.70, and a low of 56,491.85, before closing at 56,799.90, up 303 points or 0.54%. The index’s sustained position above all its key moving averages reaffirms a bullish structure, with buyers maintaining firm control despite intermittent profit booking.
The technical indicators reflect strengthening momentum. The RSI stands near 67, indicating healthy strength without entering overbought territory, while the MACD remains above its signal line, confirming a positive crossover and reinforcing bullish sentiment. The short- and medium-term moving averages (21-, 50-, and 100-day SMAs) are aligned favorably, indicating well-defined trend support. However, given the recent rally, traders should stay alert for near-term consolidation before a potential breakout above 57,000.
The Nifty Bank remains on a strong footing, trading comfortably above its 200-day SMA, with immediate support seen near 55,400-55,000. As long as the index sustains above these supports, the broader outlook remains positive, with potential upside targets around the previous swing high of 57,600-57,800. Any dip toward support zones could offer buying opportunities for positional traders. However, a sharp move beyond 57,800 would be required to confirm a fresh leg of the rally, while profit-taking at higher levels cannot be ruled out in the short term.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
