Top stocks to buy: Experts suggest BSE, GMR Airports, Nykaa, Zen Tech, and 2 others - Target price, stop-loss
Top stocks to buy: Market benchmark Nifty 50 traded lacklustre intraday on Tuesday, 27 October, after snapping its four-day losing streak in the previous session.
The index touched an intraday high and low of 22,804 and 22,653, respectively, on Tuesday, indicating a lack of momentum in the market.
According to Vishnu Kant Upadhyay, AVP- Research at Master Capital Services, the broader technical structure remains weak, with Nifty continuing to trade below its key short-term moving averages and the formation of lower highs and lower lows reinforcing the prevailing bearish bias.
"On the upside, 22,800-23,000 remains a crucial resistance zone, and a sustained move above this range could attract fresh buying. On the downside, 22,500-22,400 remains an important support zone," said Upadhyay.
Vishnu Kant Upadhyay of Master Capital Services and Deepesh Sarawagi of Choice Broking recommend buying the following six stocks for the next 1-2 weeks:
Upadhyay pointed out that the stock is showing signs of a potential trend reversal after decisively breaking above the declining trendline near ₹3,300 and subsequently retesting the breakout zone before rebounding sharply.
This price action reflects renewed buying interest at lower levels and strengthens the bullish outlook.
The stock also appears to be in the early stages of forming an inverse head and shoulders pattern, a potential bullish reversal formation that could support further upside.
"Currently, the price is trading around a cluster of short- and long-term moving averages, indicating a consolidation phase. Sustained trading above ₹3,400 would reinforce the positive setup and improve the prospects of a recovery," said Upadhyay.
Upadhyay said the stock is showing early signs of a potential recovery after an extended downtrend, with the stock witnessing fresh buying interest near its crucial long-term horizontal support zone of ₹85.
The subsequent bounce from this level indicates demand emerging at lower prices. Additionally, a bullish RSI divergence on the daily chart suggests weakening selling pressure and the possibility of a short-term trend reversal.
However, the stock continues to trade below its key moving averages, making a sustained recovery essential for confirming improving momentum.
"Holding above ₹85 remains crucial to the bullish setup, with the current levels offering a potential opportunity to participate in a technical rebound," said Upadhyay.
According to Upadhyay, the stock has demonstrated renewed buying interest after a sharp rebound from the crucial ₹670- ₹680 support zone, which aligns with the 200 EMA and a key horizontal support area.
This confluence strengthens the significance of the support and provides a constructive technical outlook.
The stock has also reclaimed its key long-term moving averages, including the 100- and 200-day EMAs, reinforcing the broader bullish chart structure.
"The recent recovery suggests improving sentiment following the correction, with the potential for further upside if the stock sustains above the support zone. A buy-on-dips strategy may be considered while the ₹670- ₹680 zone remains intact," said Upadhyay.
According to Sarawagi, Nykaa has taken support near the lower boundary of its rising channel and reversed from this zone by forming a bullish engulfing candlestick pattern, indicating fresh buying interest.
The lower Bollinger Band is also providing support around the same level, strengthening the support zone. On the hourly timeframe, the stock is holding above both the 20 and 50 EMAs, reflecting positive short-term momentum.
"This price action suggests that buyers are supporting the stock at lower levels and the possibility of further upside remains. If the stock maintains its strength and continues to hold above the support zone, it may move towards the target of ₹365, while ₹313 remains the key stop-loss level," said Sarawagi.
Sarawagi pointed out that ICICI Prudential Asset Management Company has rebounded from its key support zone with a strong green candle, indicating renewed buying interest.
The stock has also moved above the highs of the previous two trading sessions and closed beyond that range, showing improvement in short-term price action. The RSI has recovered from the oversold zone, suggesting that selling pressure is easing and momentum is gradually improving.
"The stock’s reaction near support is a positive sign, with buyers stepping in to push prices higher. If this strength continues and the stock holds above its support zone, it may gain further ground towards ₹3,030. The stop-loss is placed at ₹2,620 to manage downside risk," said Sarawagi.
According to Sarawagi, Zen Technologies has broken out of its descending channel pattern and recently retested the channel’s upper trend line.
The stock has shown a reversal from this retest zone, suggesting renewed buying interest and potential continuation of the upward move. The lower Bollinger band is also providing support around the same level, further strengthening the technical setup.
Meanwhile, the RSI is showing bullish divergence, indicating a possible improvement in momentum.
"The stock’s ability to hold above the breakout zone will be important for further upside. If buying interest continues, the price may move towards ₹1,700, while ₹1,470 remains the stop-loss level," said Sarawagi.
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HomeMarketsStock MarketsTop stocks to buy: Experts suggest BSE, GMR Airports, Nykaa, Zen Tech, and 2 others - Target price, stop-loss
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