Market Trading Guide: Buy Dalmia Bharat and CreditAccess Grameen on Thursday for up to 12% increase

Nifty ended with a decline for the third day in a row on Wednesday due to selling pressure in financial services and consumer stocks. The index fell below the 200-DMA on an intraday basis for the first time in many weeks.Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said the index could remain highly volatile in the coming days. “Normally, when the 200 DMA is challenged, it shakes the market, and it won’t be all black and white. On the downside, support is placed at 25,125. A decisive drop below 25,125 could trigger further panic in the market. On the higher side, resistance is placed on a closing basis at 25,200,” De said.

Here are 2 stock recommendations for Thursday: Buy Dalmia Bharat at Rs 2,230-2,235 | Benefit: 6%

Target: Rs 2,370

Stop loss: Rs 2,160

Dalmia Bharat Ltd has shown a breakout of cup and handle pattern on the daily time frame. There has been a consistent increase in trading volume, indicating growing buyer interest. Moreover, the momentum indicator RSI is trading around the 70 level, which supports the uptrend. Directionally, the MACD shows a positive crossover, confirming buying interest.(Virat Jagad, Technical Research Analyst, Bonanza Portfolio)

Buy CreditAccess Grameen at Rs 1,350-1,355 | Benefit: 7%

Target: Rs 1,450

Stop loss: Rs 1,300

On the daily chart we have seen a breakout of the descending triangle pattern. This tells us that the bulls are responsible for safety. On an indicator level, the MACD shows a positive crossover, which confirms buying interest. We could see further buying interest in CreditAccess Grameen Ltd up to Rs 1,450, with immediate support at Rs 1,300. A new buying push would have been possible if it had managed to stay above 1,350 points.

(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)