Tech Picks: Trent, Physicswallah among 5 stocks to buy for up to 23% returns
The Indian stock market traded on a mixed note on Monday, with the Sensex slipping into the red while the Nifty held on to gains. A mix of headwinds and tailwinds kept investors cautious, following last week’s positive close that ended an eight-week losing streak. Given the prevailing market conditions, analysts treat the current rebound as a relief rally until the index demonstrates sustained strength above key resistance levels. Here are 5 stock recommendations for decent returns in the short term:
2/6
Buy Persistent Systems at Rs 5,700 | Stop loss: Rs 5,300| Target: Rs 6,300-6,400 | Returns: 12%
Persistent Systems has witnessed a strong rebound from its 200-DSMA, coinciding with a breakout above the neckline and sustaining its upward momentum. The counter has demonstrated relative outperformance within its sector, reflecting underlying strength. The recent resurgence further reinforces the positive technical outlook, with the stock trading above all its key EMAs and the 200-day SMA, indicating a constructive bullish bias.
Physicswallah has staged a sharp rebound from its recent 200-day SMA, forming a V-shaped recovery on the daily chart. Further strengthening the bullish outlook, the MACD histogram has registered a trendline breakout above the zero line, signalling improving momentum. Collectively, the majority of technical indicators remain aligned positively, reinforcing the prevailing bullish undertone and supporting the potential continuation of the stock’s upward trajectory.
Trent witnessed a strong upmove over the previous week, backed by robust volumes, effectively negating its recent corrective phase. On the weekly chart, the counter has formed a higher high, signalling a potential reversal of the prevailing bearish trend, while the latest surge has established a higher bottom. Additionally, the 20-day EMA has crossed above the 200-day SMA, reinforcing the improving technical structure and strengthening the bullish outlook.
Allied Blenders and Distillers Limited demonstrates a decisive breakout from a symmetrical triangle consolidation pattern on the daily chart, pushing to 711.55 (+2.61%). Trading comfortably above its key 20/50/100/200 EMAs and clearing major horizontal resistance at 664.9 with expanding volume and a rising RSI crossing past signal lines, the setup confirms accelerated upside momentum toward 800.
Virat Jagad, Sr Technical Research Analyst at Bonanza
Aditya Infotech demonstrates a decisive horizontal breakout above its key resistance level of 4,098 on the daily chart, pushing to 4,185 (+5.36%). Trading comfortably above its 20/50/100/200 EMAs with strong volume accumulation and a bullish RSI momentum crossover past signal lines, the setup confirms accelerated upside momentum toward 4,750.
Virat Jagad, Sr Technical Research Analyst at Bonanza
Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.