Amidst renewed buying interest in the Indian equity markets, several prominent domestic brokerage firms have highlighted specific stocks with strong technical parameters and favorable chart patterns, suggesting potential for short-term gains. SMC Global Securities, SMIFS, and Bajaj Broking are among those offering fresh entry opportunities into State Bank of India, Wipro, Indian Oil Corporation, and Union Bank of India.
Brokerage Recommendations for Short-Term Stock Picks
Indian Oil Corporation (IOCL)
SMIFS analysts indicate that Indian Oil Corporation Ltd (IOCL) is demonstrating a constructive bullish setup. The stock has successfully broken out of an extended consolidation phase, signaling fresh upward momentum. This breakout was accompanied by robust price and volume participation, suggesting significant accumulation. The technical structure is improving, with key moving averages now offering support and momentum indicators strengthening. As long as IOCL maintains its position above the breakout zone, the positive bias is expected to continue. SMIFS projects an upside potential towards Rs 160 from its current market price of Rs 144.50, recommending a stop loss at Rs 137 on a closing basis to preserve the bullish outlook.
Union Bank of India
According to SMC Global Securities, Union Bank of India is showing a steady recovery on its daily chart, having found strong buying support in the Rs 164–166 range. The stock appears to be forming an ascending triangle pattern, characterized by higher lows, which points to increasing buying interest around the Rs 186–187 resistance level. It continues to trade above its long-term moving average, underscoring underlying strength, while the Relative Strength Index (RSI) is gradually moving higher. Immediate support is seen between Rs 178–180, followed by Rs 170–172. A decisive breakout above Rs 187–190 could lead to an upward move towards Rs 200, potentially extending to Rs 205-208. Investors can accumulate the stock in the Rs 180-185 range with a stop loss below Rs 170.
State Bank of India (SBI)
Bajaj Broking notes that State Bank of India (SBIN) has achieved a breakout above a falling channel that encompassed its price range over the last 12 weeks, indicating a resumption of its upward trend and presenting a new entry opportunity. A key observation from the weekly chart is the stock's recent rebound after forming a potential double bottom near the critical support area of Rs 930-950. This confluence zone includes the 52-week Exponential Moving Average (EMA) at Rs 968 and the 50 percent retracement level of its previous major rally from Rs 680 to Rs 1,234. Bajaj Broking anticipates the stock to move towards Rs 1,149 in the coming quarters, representing the 123.6 percent external retracement of its prior decline from Rs 1,124-938. The weekly stochastic is also in an uptrend, reinforcing the positive bias. A stop loss is recommended at Rs 940.
Wipro
SMC Global Securities observes encouraging signs of a bullish reversal for Wipro Ltd on the daily chart, following a sharp recovery from the Rs 155–160 zone. The stock has formed a rectangular consolidation pattern between Rs 182 and Rs 196, with recent price action suggesting a breakout above the upper boundary. Trading near Rs 198, Wipro is also approaching its 200-day Exponential Moving Average (EMA). The RSI is strengthening above the 60 mark, and the Moving Average Convergence Divergence (MACD) remains positive, supporting improving bullish momentum. Immediate support is at Rs 190–192, with stronger support around Rs 183. A sustained breakout above the Rs 200–202 zone could extend the recovery towards previous swing highs. The technical outlook remains cautiously positive, with accumulation advised in the Rs 195-200 range for an expected upside of Rs 224-226, setting a stop loss below Rs 180.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.