Market trading guide: Buy Astral, Dabur and 3 more small cap stocks on Friday for up to 9% gains

Benchmark index Nifty ended in the red on Thursday, posting its second consecutive losses due to selling pressure in financials, metals and real estate stocks. In doing so, it slipped below the critical 21-EMA on the daily time frame, indicating weakness.Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said the index has fallen towards its previous swing high which was around 25,450. “Going forward, the short-term trend could weaken further if the index falls below 25,450. On the other hand, if the index remains above 25,450, a significant trend reversal could occur,” De said.

Here are 5 stock recommendations for Friday:

Buy Astral for €1,566.10 | Positive: 3.4%

Stop loss: Rs 1,460
Target: Rs 1,620

Astral made an impressive breakout in today’s session, rising 6.74% to the closing price of R1,566.10, supported by strong trading volumes. The stock has successfully broken a crucial resistance zone around ·1,520, marking a decisive breakout from the multi-week ascending triangle pattern on the daily chart.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy Dabur India within range Rs 523.70 | Benefit: 9%

Stop loss: Rs 508
Target: Rs 555/570Dabur India Ltd is showing signs of strength after forming a base near the 7485-490 support zone. The stock has regained its short-term moving averages and is approaching a key resistance zone near 7528-535, as indicated on the chart. A breakout and sustained move above this zone could create new upward momentum. The RSI at 60.30 indicates improving bullish sentiment, confirming underlying strength.

Buy Varroc Engineering for Rs Rs 608 | Benefit: 5%

Stop loss: Rs 598
Target: Rs 636

Varroc Engineering is showing a bullish reversal from key support levels. The stock maintains a higher high-high-low structure and has recently recovered from its higher low, indicating strength. It is now on the verge of a breakout from the short-term consolidation, indicating renewed upward momentum. A decisive move above Rs 636 on strong volumes could trigger a rally towards Rs 686 and above. The RSI at 57.37 reflects moderate strength, while trading above the 20-day, 50-day, and 200-day EMAs confirms solid trend alignment. On the downside, the support is at Rs 608, which offers buying opportunities on dips. Traders can consider accumulating near Rs 608 with a stop-loss of Rs 598. A confirmed breakout above Rs 636 offers a favorable risk reward for positional traders.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy Aarti Industries at Rs 390.5 | Positive: 2.4%

Stop loss: Rs 375
Target: Rs 400

AARTIIND moves within a narrow range of Rs 369-400. The stock has recently bounced back from lower levels and is now poised to break above the higher range, signaling a possible shift in momentum. A sustained move above Rs 400 on strong volumes could confirm a bullish breakout, paving the way for an upward move towards Rs 427. The RSI at 58.46 is trending upward, reflecting strengthening momentum and increasing buying interest. Technically, the stock is trading above the 20- and 50-day EMAs and approaching the 100-day EMA; a breakout above this level could push the price towards the 200-day EMA, indicating a strengthening trend in the medium term. On the other hand, Rs 385 can act as major support.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy Sundaram Finance at Rs 4,858.40 | Benefit: 8%

Stop loss: Rs Rs 4,685
Target: Rs 5,250

SUNDARMFIN, after a strong revival from a key support zone, has broken above a key resistance level of Rs 4,738 on the daily time frame while forming bullish candle patterns, indicating an early trend reversal. The breakout, which is accompanied by rising volumes, signals renewed buying interest and improving sentiment.

Technically, SUNDARMFIN is trading comfortably above the 20-day, 50-day and 200-day EMAs, indicating strong bullish momentum and an established uptrend. The RSI at 68.09 further reflects strengthening momentum with room for additional upside potential before the overbought area. In the short term, the stock is poised to move towards Rs 5250, with immediate resistance around Rs 5000. The support is at Rs 4738, which provides buying opportunities during dips. Traders can consider long positions near Rs 4858.40 with a target of Rs 5250 and a stop-loss on while maintaining disciplined risk management.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

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