Market Trading Guide: Buying Coforge and NBCC on Monday could result in gains of up to 7% in the short term.

Nifty closed sharply lower on Friday due to several negative factors, including fresh gains between the US and Iran, rupee depreciation and significant selling in financial stocks. The index briefly hovered above the 50 EMA and then fell back below the 50 EMA, again indicating bearish sentiment.

Rupak De, senior technical analyst at LKP Securities, said the mood worsened further as the index fell below its 50-day EMA intraday. Additionally, RSI has re-entered a bearish crossover on the daily chart, reflecting bearish momentum, he said.

“Overall, the sentiment looks weak and we see a lot of buying around the strike price of 24,200. If Nifty remains below 24,200 on Monday, the index could see a further correction towards the 24,050-24,000 area. On the other hand, a move above 24,200 again could trigger a short-term recovery rally towards 24,350-24,400,” De said.

Here are two stocks to buy:

Buy Coforge for Rs 1,368 | Upside potential: 7% | Stop Loss: Rs 1,320 | Target: Rs 1,420-1,460

Coforge Limited witnessed a strong bounce from lower levels and recently broke through the important Rs 1,330-1,350 resistance zone on the back of strong trading volumes. The stock is trading above its short-term EMA and RSI has risen above 65, indicating improving bullish momentum. A breakout also signals a possible trend reversal after a prolonged correction phase. Buying CMP (Rs 1,365-1,370) can be considered as stop loss near Rs 1,320. On the positive side, the stock may head towards Rs 1,420-1,460 in the near term. Holding above Rs 1,330 is important to sustain the positive momentum.

(Virat Jagad, Senior Technical Research Analyst, Bonanza Portfolio)

Buy NBCC (India) for Rs 101 | Upside potential: 7% | Stop Loss: Rs 97-98 | Target: Rs 104-108

NBCC (India) Limited is showing strong signs of recovery after a prolonged correction, with the stock recovering all major EMAs and breaking through the Rs 98-100 resistance zone. Increasing volume and RSI near 70 indicate strengthening bullish momentum. Stock prices have formed a high-high-low structure, suggesting that the upward trend is continuing. Buying CMP (Rs 100-101) may consider stop loss near Rs 97-98. On the positive side, the stock may head towards Rs 104-108 in the near term. Staying above the Rs 98 breakout zone remains important to maintain the positive bias.

(Virat Jagad, Senior Technical Research Analyst, Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)