The Indian equity benchmark experienced another session of decline, with investor sentiment weighed down by rising inflation concerns, elevated crude oil prices, and the escalating conflict in West Asia. The BSE Sensex fell 460.30 points, or 0.62%, closing at 73,249.39, while the NSE Nifty50 dropped 123.70 points, or 0.54%, to settle at 22,687.65.
Despite the broader market weakness, select buzzing stocks, including Punjab National Bank (PNB), Indian Hotels Company Ltd, and Zydus Lifesciences Ltd, are expected to remain under the spotlight for traders. Vishnu Kant Upadhyay, AVP of Research at Master Capital Services, has provided specific recommendations for these stocks for Friday's trading session.
Indian Hotels Company: Bullish Breakout
Indian Hotels has broken out of a prolonged consolidation phase, moving above the critical Rs 750 resistance zone. This signals renewed buying interest and reinforces a bullish outlook for the stock. The breakout is supported by a positive shift in its price structure, with the stock trading above its key moving averages.
- Recommendation: Buy
- Target Price: Rs 845-880
- Stop Loss: Rs 730
On the long-term chart, the formation and subsequent breakout of an inverse head and shoulders pattern suggest a potential trend reversal. Sustained trading above Rs 750 is crucial for continued upward momentum, with this former resistance now acting as an important support area during any near-term pullbacks.
Zydus Lifesciences: Demonstrating Resilience
Zydus Lifesciences continues to exhibit relative strength even amidst the broader market's softness, underscoring its resilience and underlying buying interest. The stock has been consolidating above the crucial Rs 1,080-1,100 support zone, maintaining a robust price structure characterized by higher highs and higher lows.
- Recommendation: Buy
- Target Price: Rs 1,200-1,230
- Stop Loss: Rs 1,080
Sustained support above this zone upholds the positive outlook and keeps the broader bullish trend intact. Trading near its short-term moving averages, the stock appears to be in a consolidation phase before its next directional move. The Relative Strength Index (RSI) at 49 indicates room for momentum to strengthen. A decisive move above recent swing highs could trigger fresh buying and pave the way for the next leg of the uptrend.
Punjab National Bank (PNB): Strong Bullish Momentum
PNB has recorded a decisive breakout above the key resistance zone of Rs 118, accompanied by a runaway gap on the daily chart. This indicates strong bullish momentum and the potential for trend continuation. The stock is comfortably trading above all its key moving averages, reflecting strengthening trend dynamics and sustained buying interest.
- Recommendation: Buy
- Target Price: Rs 130-136
- Stop Loss: Rs 115
The breakout suggests improving market sentiment, with further upside potential if the price holds above the breached resistance zone. The RSI at 62 signals positive momentum, while the Moving Average Convergence Divergence (MACD) indicates bullish divergence, further reinforcing the constructive outlook. The overall chart structure favors continued upward movement, with the Rs 118 breakout zone likely to serve as immediate support.