Market Trading Guide: Muthoot Finance among 2 stock recommendations for Tuesday

Benchmark equity indices closed higher on Monday, led by banking, and financial stocks. The S&P BSE Sensex closed 0.5% higher at 64,112, while the NSE Nifty50 index ended above the 19,100 level.

“Despite a broader negative outlook due to the prevailing downtrend, the possibility of a pullback exists, potentially taking the index to the 19,300 mark. However, it’s crucial to note that the support level at 18,900 is critical, and any closing breach below it would shift control to the bears, potentially leading the index down to the 18,500-18,300 range,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Here are the 2 stock recommendations for Tuesday:

Buy Action Construction Equipment at Rs 768.5
Target Price: Rs 835
Stop Loss: Rs 735

On the daily chart, the stock has given a breakout of range with the bullish candlestick. The stock is trading above its 21 & 50 day’s exponential moving averages on the daily time frames, which is positive for the prices in the short- to medium-term.

The Technical indicator Ichimoku Cloud suggests that the price is trading above the conversion and base line, which act as a support for the counter. The daily strength indicator RSI (14) is in bullish mode and trading above the 60 level.(Ashish Katwa, Research Analyst, Bonanza Portfolio)

Buy Muthoot Finance at Rs 1326.9
Target Price: Rs 1415
Stop Loss: Rs 1282

On the daily chart, Muthoot Finance has given a breakout of the Bullish flag with bullish candlesticks, which indicates a positive set-up in the counter. The stock is trading above its 21 & 38 day’s exponential moving averages on the daily time frames, which is positive for the prices in the short to medium term.

Technical indicator Ichimoku Cloud suggests that the price is trading above the cloud, which speaks of a bullish trend. The daily strength indicator RSI (14) is in bullish mode and trading above the 60 level.

(Ashish Katwa, Research Analyst, Bonanza Portfolio)

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