Market Trading Guide: Ramco Cements, Cholamandalam Investment among stock recommendations for Wednesday

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, ETMarkets.com|

Oct 29, 2024, 09:01:51 PM IST

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Stock Ideas

Indian headline indices S&P BSE Sensex and Nifty closed with gains for the second time in a row on Tuesday led by gains in banking and financial stocks which helped them reverse the course in the final hour of trading. The markets traded under pressure for most of the day as tepid earnings failed to lift the investor sentiments. The 30-share BSE Sensex rose 364 points, or 0.45%, to close at 80,369, while the broader NSE Nifty gained 128 points, or 0.52%, ending at 24,467.
The Nifty has risen slightly after forming a bullish harami pattern and the RSI has entered a bullish crossover near the oversold zone, suggesting positive sentiment in the short term, Rupak De, Senior Technical Analyst at LKP Securities said. There is potential for the index to move towards 24,700-24,750 on the upside, while support is positioned at 24,250 on the downside, he added.

Here are 2 stock recommendations for Wednesday:

ETMarkets.com

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Buy Ramco Cements at Rs 865

Target Price: Rs 910-950Stop Loss: Rs 820
Ramco Cements has been following an 18-day harmonic cycle, and cycle analysis suggests a potential shift in upward trend. After two months, buyers showed renewed interest in today’s session, indicating significant buying strength. On the daily timeframe, the stock is forming an ascending triangle patternand has rebounded from the rising trendline.
The Fisher indicator, a reliable tool for identifying cyclical patterns, also signals a shift in momentum. Additionally, the RSI crossing above its moving average further supports positive price action, indicating increased momentum.
Based on this setup, a long position is advisable as long as the stock trades above 820, with a target range of 910-950.
(Kunal Kamble, Senior Technical Research Analyst, Bonanza)

Agencies

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Buy Chola Finance above Rs 558.6

Target Price: Rs 585Stop Loss: Rs 544
Cholamandalam Investment and Finance Company has potentially completed the corrective C wave, signaling a possible pause in its downtrend. The formation of a hammer pattern at this point supports a short-term trend reversal. At the current level, the stock appears favorable for a buy position with a small stop-loss at 1260, targeting an upward move toward the 1350-1390 range. The RSI’s rebound from the oversold zone further supports a potential halt in the downtrend, and the day’s increased volume suggests growing buyer interest at this level. Based on this technical setup, a long position is recommended.
(Kunal Kamble, Senior Technical Research Analyst, Bonanza)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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This article was originally published by Indiatimes.com. Read the original article here.