Market Trading Guide: Buy Blue Star and Kirloskar Oil on Thursday for short-term gains of up to 5%

Nifty ended with gains for the second day in a row on Wednesday, even as IT stocks dealt a heavy blow to the markets, while most other sectors continued their momentum from Tuesday, helped by the India-US trade deal. The RSI stands at 54.61 and is in an uptrend, but remains below the strong bullish zone.Hitesh Tailor, research analyst at Choice Equity Broking, commenting on the current trends, said the gap-down opening of the index and later a sideways trade indicate initial hesitation and lack of strong directional conviction among participants. But the index recovered in the second half of the session to eventually close around 25,776, reflecting buying interest at lower levels and underlying resilience, he said, leaving immediate resistance at 25,900-25,950, while support lies at 25,600-25,650.

Here are 2 stock recommendations for Thursday:

Buy Blue Star for Rs 1,840-1,860 | Benefit: 5%

Stop loss: Rs 1,800
Target: Rs 1,950

Blue Star is showing a strong bullish breakout on the daily chart, so a purchase in the Rs 1,840 – Rs 1,860 zone looks favorable, especially given a mild pullback towards the breakout area that has now turned into support; the stop loss should be kept at Rs 1,800 to protect against a false breakout and a pullback below the structure base, while upside targets enter Rs 1,950 as the first resistance zone and Rs 2,000 as the next psychological and technical

level, supported by a strong volume expansion, a price moving above the major moving averages and an RSI remaining above 60, indicating that momentum is with the bulls, and traders can move the stop loss higher once the first target is reached to lock in profits while following the trend.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

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

Stop loss: Rs 1,160
Target: Rs 1,300Kirloskar Oil Engines is showing another bullish break after a descending trendline on the daily chart, supported by an improving RSI near the 60 zone and price-recovering short-term moving averages, indicating momentum is shifting upwards. buying around Rs 1,220 – Rs 1,240 looks favorable, preferably on a small dip towards the breakout zone, with a stop loss at Rs 1,160 below the recent swing support and a moving average cluster to manage the risk, while upside targets are Rs 1,300 as the first resistance of the previous supply area and Rs 1,360 as the next level if momentum continues, and traders can follow the stop higher once the price remains above Rs. 1,300 to protect gains as the structure begins to form higher lows again.

(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)