Market Trading Guide: Buy Central Bank of India and Colgate Palmolive on Thursday for short-term returns

Nifty ended with gains on Wednesday, helped by strong action in IT and auto stocks, although financials, FMCG and energy stocks limited gains. Things remained volatile throughout the session as sentiment from the past sessions weighed on the markets.Rupak De, Senior Technical Analyst at LKP Securities, said investors remained largely on the sidelines as the index traded largely within the range of its 200-DMA (25,341) and 21-EMA (25,610) over the past two days. He expects the market to remain sideways until investor confidence improves. The places immediate support at 25,300 and expects the rally to continue as long as this level is maintained. On the higher side, there is resistance between 25,650 and 25,750.

Here are 2 stock recommendations for Thursday: Buy Central Bank of India at Rs 40.25 | Benefit: 6%

Stop loss: Rs 39

Target: Rs 42.75

On a daily time frame, the Central Bank of India has shown a positive break in the rectangle pattern, indicating a positive trend in the stocks. The fast (21) EMA trading above the slow (50) EMA indicates a positive trend, with price trading above both EMA indicating upward strength. Directionally, DI+ is trading above DI-, indicating a positive trend, and ADX trading north indicates strength in the move.(Virat Jagad, Technical Research Analyst, Bonanza Portfolio)

Buy Colgate Palmolive at Rs 2,270.4 | Benefit: 4%

Stop loss: Rs 2,230

Target: Rs 2,350

Colgate-Palmolive (India) Ltd has signaled a strong bullish breakout after moving above its recent consolidation range. This suggests that the stock is entering a new upward phase. The 21-day EMA is trending above the 50-day EMA, with price stability above both – a classic sign of short-term strength. The Directional Index (DMI) shows that buyers are in control, while a rising ADX confirms that the trend is gaining significant momentum.

(Virat Jagad, 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)