Market Trading Guide: Buy Coforge and NBCC on Monday for near-term gains of up to 7%

The Nifty ended sharply lower on Friday amid a host of negative triggers, including fresh escalation between the US and Iran, rupee depreciation, and significant selling in the financial stocks. The index has slipped back below the 50 EMA after briefly staying above it, indicating renewed weakness in sentiment.

Rupak De, Senior Technical Analyst at LKP Securities, said the mood has further deteriorated as the index also moved below the 50-day EMA on the intraday timeframe. In addition, the RSI has re-entered a bearish crossover on the daily chart, reflecting weakening momentum, he said.

“Overall, the sentiment appears weak, with heavy call writing visible around the 24,200 strike. If the Nifty sustains below 24,200 on Monday, the index could witness further correction towards the 24,050–24,000 zone. On the other hand, a move back above 24,200 may trigger a near-term recovery rally towards 24,350–24,400,” De said.

Here are the 2 stocks to buy:

Buy Coforge at Rs 1,368 | Upside: 7% | Stop Loss: Rs 1,320 | Target: Rs 1,420-1,460

Coforge Limited has witnessed a strong rebound from lower levels and recently given a breakout above the crucial Rs 1,330–1,350 resistance zone, supported by strong volumes. The stock is trading above short-term EMAs, while RSI has moved above 65, indicating improving bullish momentum. The breakout also signals a possible trend reversal after a prolonged corrective phase. A buy at CMP (Rs 1,365–1,370) can be considered with a stop loss near Rs 1,320. On the upside, the stock may head towards Rs 1,420–1,460 in the near term. Sustaining above Rs 1,330 will be important for the continuation of the positive momentum.

(Virat Jagad, Sr. Technical Research Analyst, at Bonanza Portfolio)

Buy NBCC (India) at Rs 101 | Upside: 7% | Stop Loss: Rs 97-98 | Target: Rs 104-108

NBCC (India) Limited is showing signs of a strong recovery after a prolonged correction, with the stock reclaiming all major EMAs and giving a breakout above the Rs 98–100 resistance zone. Rising volumes and RSI near 70 indicate strengthening bullish momentum. The stock has formed a higher high–higher low structure, suggesting continuation of the uptrend. A buy at CMP (Rs 100–101) can be considered with a stop loss near Rs 97–98. On the upside, the stock may head towards Rs 104–108 in the short term. Sustaining above the breakout zone of Rs 98 will remain crucial for maintaining the positive bias.

(Virat Jagad, Sr. Technical Research Analyst, at Bonanza Portfolio)

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