Market Trading Guide: Profit from Lemon Tree and PB Fintech with Up to 12% Gains
The Reserve Bank of India (RBI) has once again provided a much-needed boost to the Indian markets with its recent rate cut. This positive development has lifted the spirits of investors, leading to a second consecutive day of gains in the stock market. Financials, auto, and real estate stocks have been the primary beneficiaries of this upward trend.
The overall market sentiment remains bullish, with the Nifty index sustaining above the 21 EMA. According to Rupak De, Senior Technical Analyst at LKP Securities, the index has broken out of its recent consolidation on the hourly chart, indicating a surge in optimism. The Relative Strength Index (RSI) has also reclaimed a bullish crossover, pointing towards strong momentum. In the short term, the trend is expected to remain strong, with the potential for the Nifty to move towards 26,300 or 26,440. Support is placed at 26,060–26,000. De advises that buying on dips may be favorable as long as the index sustains above 26,000.
Given this positive outlook, here are five stock recommendations for Monday, each with the potential for significant short-term gains:
1. Shriram Pistons & Rings - Entry Price : Rs 2,837.90 - Upside Potential : 12% - Stop-loss : Rs 2,660 - Target : Rs 3,177
Shriram Pistons & Rings has broken out of its consolidation zone on the daily chart, supported by volumes well above the 20-day average. This breakout signals renewed bullish strength. The stock closed with a strong bullish candlestick, indicating robust accumulation. It continues to trade comfortably above the 20-, 50-, 100-, and 200-day EMAs, reaffirming the strength of the prevailing uptrend. With the RSI at 67.01 and trending higher, the stock reflects solid bullish momentum and strong near-term upside potential.
2. Seamec - Entry Price : Rs 1,011.30 - Upside Potential : 12% - Stop-loss : Rs 950 - Target : Rs 1,131
Seamec has broken out of a rounding-bottom pattern on the daily chart, accompanied by volumes significantly above the 20-day average. This breakout strongly signals renewed bullish interest. The stock closed with a powerful bullish candlestick, reflecting sustained buying pressure. Trading decisively above its 20-, 50-, 100-, and 200-day EMAs, the stock reaffirms the strength of its ongoing uptrend. With the RSI at 71.83 and rising, momentum remains firm, indicating solid upside potential in the near term.
3. Hindustan Copper - Entry Price : Current Market Price - Upside Potential : Not Specified - Stop-loss : Rs 349 - Target : Rs 415
The stock has given a major downward-consolidation breakout on the weekly chart, signalling renewed optimism. It continues to sustain above key moving averages. On the daily chart, a falling-wedge breakout is visible, which may propel the stock into a short-term rally. The daily RSI is in a bullish crossover and rising. On the higher side, the stock may move towards Rs 415, with support at Rs 349.
4. Lemon Tree Hotels - Entry Price : Rs 164.50 - Upside Potential : 8% - Stop-loss : Rs 159 - Target : Rs 177
Lemon Tree Hotels has given a flag-pattern breakout on the hourly chart, indicating building optimism. It is also sustaining above its critical moving averages. On the daily chart, a mild consolidation over the past few sessions has been followed by an uptick. The stock may move towards Rs 177 on the higher side, with support at Rs 159.
5. PB Fintech - Entry Price : Rs 1,690 - Upside Potential : 5% - Stop-loss : Rs 1,640 - Target : Rs 1,770
The Policybazaar operator has broken out of a five-month consolidation on the daily chart. It has also moved above the 21 EMA, confirming an emerging uptrend. The daily RSI is in a bullish crossover with a reading above 60. The short-term sentiment appears positive, with potential for an upside move to Rs 1,770, while support is placed at Rs 1,640.
These stock recommendations are based on technical analysis and should be considered in conjunction with fundamental analysis and your investment strategy. Always consult with a financial advisor before making any investment decisions.