Market Trading Guide: Buy Cholamandalam Investment and CreditAccess on Monday for a potential profit of up to 10%

India’s benchmark Nifty ended with cuts on Friday due to selling pressure in key sectors such as banking, auto and IT.

Commenting on the current outlook, Rupak De, Senior Technical Analyst at LKP Securities, said Nifty remained weak during the session as traders continued to book profits. “On the downside, it fell below the initial support at 25,850, leading to a decline towards 25,700. The next 1-2 sessions may remain volatile; after that, a sustained rally seems possible. On the higher side, resistance is at 25,850, above which a rally to 26,000-26,200 seems possible, De said.

Here are 2 stock recommendations for Monday:

Buy Cholamandalam Investment Rs 1733.60 | Positive: 6% | Stop loss: Rs 1,680 | Target: Rs 1,838

Cholamandalam Investment and Finance Company recorded a break above a key resistance level on the daily chart, closing the session with a strong bullish candlestick, supported by volumes above the 20-day average, indicating robust accumulation. The stock is trading well above the 20, 50, 100, and 200 day EMAs, reinforcing the strength of the prevailing uptrend. With the RSI at 68.59 and trending upward, bullish momentum remains solid, indicating potential for further upside in the near term.

(Kunal Kamble, Senior Technical Research Analyst, Bonanza Portfolio)

Buy CreditAccess Grameen for Rs 1,422.50 | Benefit: 10% | Stop loss: Rs 1351 | Target: Rs 1,566

CREDITACC has registered a breakout from the consolidation zone on the daily chart, closing the session with a strong bullish candlestick, supported by volumes above the 20-day average, indicating robust accumulation. The stock continues to trade comfortably above the 20, 50, 100, and 200 day EMAs, reaffirming the strength of the prevailing uptrend. With the RSI at 58.79 and trending upward, bullish momentum remains constructive, indicating potential for further upside in the near term.

(Kunal Kamble, Senior 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)