Market Trading Guide: Buy Eternal, CDSL and 3 Other Stocks on Tuesday for Up to 10% Gains

Indian benchmark indices Nifty on Monday ended their two-session gains amid a sell-off in FMCG and IT stocks. The profit bookings at higher levels took place against the backdrop of weak global signals.

Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking said Nifty managed to defend the 25,200-point mark despite today’s losses and close above its immediate support. “The overall trend remains bullish as long as Nifty trades above 25,050. A gradual upward move towards 25,400 seems likely in the near term. On the derivatives front, a fresh CALL message was observed at the 25,300 strike, which now has the highest open interest (OI) on the Call side. A decisive break above 25,300 could trigger short covering, paving the way for further upward movement. Meanwhile, the base has moved higher to the 25,200 strike, indicating strong support at that level,” Jain said.

Here are 5 stock recommendations for Tuesday:

Buy CDSL for Rs 1,620 | Benefit: 6%

Stop loss: Rs 1,552
Target: Rs 1,720

The stock has made a strong close above the previous swing high and above the channel resistance level, indicating a breakout with renewed strength. The price remains well above the 20-day EMA, reflecting positive short-term momentum and a continuation of the trend. Furthermore, the RSI has entered a bullish crossover, which is a sign of increasing strength and increasing buying interest. These technical conditions suggest the stock could continue its near-term upside momentum, provided it remains above its breakout and short-term averages.

(Vatsal Bhuva, Technical Analyst at LKP Securities)

Buy Delhivery for Rs 470-473 | Benefit: 7%

Stop loss: Rs 430
Target: Rs 505

After forming a bullish Morning Star candlestick pattern near the 50-day EMA during the correction phase, the stock is showing the first signs of a turnaround. The price remains above the 20-day EMA, reflecting improving near-term strength and momentum. Furthermore, a small positive RSI divergence along with a bullish crossover adds confirmation to the reversal. These technical indicators point to strengthening sentiment and suggest the potential for further upside in the stock in the coming sessions.

(Vatsal Bhuva, Technical Analyst at LKP Securities)

Buy Eternal at Rs 348 | Benefit: 6%

Stop loss: Rs 334
Target: Rs 370

The stock’s chart structure shows a clear pattern of higher highs and higher lows, indicating a strong ongoing uptrend. The stock remains above the 20-day EMA, reflecting consistent buying support and positive short-term momentum. Moreover, the presence of a hidden bullish divergence further increases the probability of trend continuation. Together, these technical indicators suggest that the current upward momentum is likely to continue, with the stock expected to continue its uptrend in the coming sessions.

(Vatsal Bhuva, Technical Analyst at LKP Securities)

Buy Kfin Technologies for Rs 1,143.80 | Benefit: 10%

Stop loss: Rs 1,087
Target: Rs 1,258

KFINTECH witnessed a break above a descending trendline on the daily chart, closing the session with a strong bullish candlestick, supported by volumes well above the 20-day average, indicating robust accumulation. The stock is trading comfortably above the 20, 50, 100 and 200 day EMAs, reaffirming the strength of the prevailing uptrend. With the RSI at 61.74 and trending upward, bullish momentum remains healthy, suggesting potential for further upside in the near term.

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

Buy Motilal Oswal Financial Services for Rs 1003.95 | Benefit: 8%

Stop loss: 964
Goal: 1084

MOTILALOFS has registered a breakout from the cup-and-handle pattern on the daily chart, closing the session with a strong bullish candlestick, accompanied by volumes significantly above the 20-day average, indicating robust accumulation. The stock is trading comfortably above the 20, 50, 100 and 200 day EMAs, reaffirming the strength of the prevailing uptrend. With the RSI at 65.89 and trending upward, bullish momentum remains solid, 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)