The Indian stock market is expected to open lower on Friday, following weak global market cues, as surging crude oil prices stoked inflation worries and fears of interest rate hikes by global central banks. According to reports from NDTV Profit, the benchmark indices Sensex and Nifty 50 rebounded after three days of sharp weakness in the previous session. On Thursday, the Sensex gained 138.36 points, or 0.19%, to close at 74,902.59, while the Nifty 50 settled 46.30 points, or 0.20%, higher at 23,477.80. Nagaraj Shetti, AVP, Technical Research at HDFC Securities, noted that Nifty 50 formed a small positive candle on the daily chart with lower shadow, indicating a minor bounce back from the oversold region.
Nagaraj Shetti has recommended two stocks for short-term investment with a 2-3 week timeframe. As reported by NDTV Profit, the technical stock picks are Emmvee Photovoltaic Power and Electronics Mart India shares. Shetti believes further weakness from current levels could drag the Nifty 50 index down to the next crucial support of around 23,100 levels in the near term.
According to NDTV Profit reports, Emmvee Photovoltaic Power stock price has witnessed a sustainable breakout on Thursday after showing range-bound action over the last 4-5 weeks. Shetti recommends buying the stock at ₹343.50 with a target price of ₹370 and stop loss at ₹330. The technical analyst noted that larger bullish patterns like higher tops and bottoms are intact on the weekly chart, with the stock price surging higher from near the support of 10-week EMA. Latest technical analysis from Ventura Securities confirms the stock has given a Symmetrical Triangle Breakout on the daily chart supported by volumes with a bullish candle reaching to a high of 344.65 (SEP 26), which is higher than the previous swing tops. Indicators like MACD momentum expands, RSI trading above 50 & Advance/Decline suggests positive crossover, with the stock trading above 200 SMA.
As reported by NDTV Profit, Electronics Mart India share price has been moving up consistently as per bullish pattern like higher tops and bottoms over the last few months. Shetti suggests buying the stock at ₹193.50 with a target price of ₹208 and stop loss of ₹185. The weekly candle of this week signals a formation of bullish rising three method type pattern, which is an uptrend continuation pattern, according to the technical analyst. Volume and daily/weekly RSI show positive indications for the stock price ahead.
