Nifty’s Uptrend: Buy Blue Star and Kirloskar Oil for Short-Term Gains

Nifty ended with gains for the second day in a row on Wednesday, despite IT stocks dealing a blow to the markets. Most other sectors continued their positive momentum, buoyed by the India-US trade deal. The Relative Strength Index (RSI) stands at 54.61, indicating an uptrend while remaining below the strong bullish zone.

Commenting on the current trends, Hitesh Tailor, Research Analyst at Choice Equity Broking, noted that the index's gap-down opening and subsequent sideways trade reflect initial hesitation and lack of strong directional conviction among participants. However, the index staged a recovery in the latter half of the session, closing around 25,776. This suggests buying interest at lower levels and underlying resilience. Immediate resistance is seen at 25,900–25,950, while support is at 25,600–25,650.

Buy Blue Star at Rs 1,840-1,860 | Upside: 5%

Stop-loss: Rs 1,800

Target: Rs 1,950

Blue Star is exhibiting a strong bullish breakout on the daily chart. Buying in the Rs 1,840–Rs 1,860 zone appears favorable, especially on a mild pullback toward the breakout area, which has now turned into support. The stop loss should be placed at Rs 1,800 to protect against a false breakout and a drop back below the structure base. Upside targets are at Rs 1,950 as the first resistance zone and Rs 2,000 as the next psychological and technical level. Strong volume expansion, the price moving above key moving averages, and the RSI holding above 60 indicate that momentum is with the bulls. Traders can trail the stop loss higher once the first target is achieved to lock in gains while riding the trend.

Buy Kirloskar Oil at Rs 1,220-1,240 | Upside: 5%

Stop-loss: Rs 1,160

Target: Rs 1,300

Kirloskar Oil Engines is showing a fresh bullish breakout from a falling trend line on the daily chart. This is supported by an improving RSI near the 60 zone and the price reclaiming short-term moving averages, indicating a shift in momentum upward. Buying around Rs 1,220–Rs 1,240 looks favorable, preferably on a small dip toward the breakout zone. The stop loss should be set at Rs 1,160 below the recent swing support and moving average cluster to manage risk. Upside targets are at Rs 1,300 as the first resistance from the prior supply area and Rs 1,360 as the next level if momentum sustains. Traders can trail the stop higher once the price sustains above Rs 1,300 to protect gains as the structure starts forming higher lows again.

These recommendations are based on technical analysis and are provided by Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio. It is important to note that these views and opinions are those of the experts and do not necessarily represent the views of Economic Times.

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