Market Trading Guide: Shriram Finance and Max Health offer up to 13% profits in the short term

Nifty ended with cuts on Thursday led by massive selling pressure on IT stocks. It was the second loss in a row as the index remained under selling pressure after a weak open.Commenting on the day’s action, Rupak De, senior technical analyst at LKP Securities, said the selling momentum was not strong, resulting in a largely lackluster session. The index traded within the range of 25,750–25,850 all day. “Despite the correction, it managed to close above 20DMA, leaving the possibility of recovery intact. On the upside, resistance remains at 26,000. On the downside, support is seen at 25,750/25,500,” De added.

Here are 2 stock recommendations for Wednesday:

Buy Shriram Finance for Rs 1,083 | Benefit: 11%

Target: Rs 1,020

Stop loss: Rs 1,140/1,200

Shriram Finance remains in a strong uptrend, with prices holding above key moving averages and recently breaking out to new highs, indicating continued strength, supported by positive momentum and an elevated RSI; A buy can be considered on dips around Rs1,060 – Rs1,075 or on strength above Rs1,090, with a cautious stop-loss at Rs1,020 below the recent breakout zone, while the upside targets are Rs1,140 followed by Rs1,200, keeping the bias positive as long as the stock remains above the short-term moving averages.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy Max Healthcare for Rs 1,063 | Benefit: 13%

Target: Rs 1,020Stop loss: Rs 1,140/1,200

Max Healthcare is showing the first signs of recovery after a prolonged correction, with the price stabilizing near the long-term support zone and trying to regain the short-term moving averages. The recent rebound below Rs 1,000, coupled with the rise in RSI from oversold levels, indicates improving momentum. However, the stock is still facing resistance around the Rs1,080-Rs1,095 zone where the 50 and 100 EMA are placed. Buying can be considered on dips near Rs1,045 – Rs1,060 or on a decisive move above Rs1,095. A prudent stop-loss should be kept at Rs1,020 below the recent swing low.

Upside targets are Rs1,140 and Rs1,200 as recovery becomes stronger than key averages.

(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)