Indian benchmark indices ended flat on Tuesday amid global and domestic economic developments, with the BSE Sensex closing at 81,510.05 and the NSE Nifty50 settling at 24,610.05. Among the buzzing stocks, PNC Infratech Ltd, Rail Vikas Nigam Ltd (RVNL), and Vedanta Ltd remain in the spotlight. Here’s what Laxmikant Shukla, Technical Research Analyst at YES Securities, suggests about these stocks.
PNC Infratech: Strong Buy Opportunity
- Recommendation: Buy
- Target Price: ₹385
- Stop Loss: ₹310
PNC Infra has exhibited robust upward momentum, rebounding from its ₹308-support level. The breakout of a ’rounding bottom’ pattern, a bullish technical indicator, with significant volume suggests strong buying interest.
Key Levels:
| Entry Range | Stop Loss | Upside Target |
|---|---|---|
| ₹330-₹334 | ₹310 | ₹385 |
Analyst Insight:
- The breakout pattern signals continued bullish momentum.
- Dips toward ₹330-₹334 offer ideal buying opportunities for traders.
Rail Vikas Nigam Ltd (RVNL): Promising Momentum Ahead
- Recommendation: Buy
- Target Price: ₹530
- Stop Loss: ₹465
RVNL has seen a gradual decline to ₹410, which appears to be a bottoming-out level supported by historical chart patterns. The stock is trading above its 20- and 50-day SMAs, with the RSI moving into positive territory, indicating potential for further upside.
Key Levels:
| Entry Range | Stop Loss | Upside Target |
|---|---|---|
| Above ₹485 | ₹465 | ₹530 |
Analyst Insight:
- A decisive move above ₹485 could trigger an upward rally toward ₹530.
- Consolidation at current levels suggests a stable base for growth.
Vedanta: Exercise Caution
- Recommendation: Caution
- Resistance: ₹525
- Support: ₹488
Vedanta has experienced a sharp rise, moving from ₹449 to ₹525 in a short span. While the uptrend is encouraging, the resistance at ₹525 and potential for short-term corrections call for careful trading.
Analyst Insight:
- Investors are advised to use trailing stop-loss orders to protect profits.
- Support near ₹488 provides a safety net, but profit-booking pressures may emerge.
Technical Overview
| Stock | Recommendation | Support Level | Resistance Level | Target Price | Stop Loss |
|---|---|---|---|---|---|
| PNC Infra | Buy | ₹308 | N/A | ₹385 | ₹310 |
| RVNL | Buy | ₹410 | ₹485 | ₹530 | ₹465 |
| Vedanta | Caution | ₹488 | ₹525 | N/A | Trailing SL |
Conclusion
YES Securities highlights PNC Infra and RVNL as promising buys with bullish technical setups and strong upward potential. While Vedanta is riding a broader uptrend in the metals sector, caution is advised due to its resistance levels and potential profit-booking pressures. Investors should strategically manage their entries and exits, keeping stop-losses in place to mitigate risks.
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Disclaimer
This article is for informational purposes only. Consult a financial advisor before making any investment decisions.