Buy Lupin, Black Box, Federal Bank And CESC For Short Term

The Indian market witnessed some profit taking at higher level as expected. The NIFTY index dropped during the closing hour after testing the psychological 26k mark. The Bank nifty also corrected to close below 54K mark, down 0.25 per cent since the previous session’s close. The midcap select index managed to see decent recovery and closed slight below 13300 mark. In today’s edition please find some stock recommendation for the short term.

Stock Recommendations

Lupin shares are currently trading in a corrective trend of the impulse started from a fresh impulse from 1545. The corrective bottom is placed at 23.6 per cent Fibonacci retracement of 1545-2312 rally and closed on a firm note on Tuesday above the 20 days EMA. The immediate resistance is pegged at 2255-60 range which is a trendline resistance of a flag pattern and a breakout above the same may provide room for a fresh impulse with immediate target at reaction high 2312 and towards 2430 levels which is 38.2 per cent extension of the previous impulse. As pharma looks a safe bet in high valuation market, we prefer to buy for a short-term target 2250/2310 and then 2400 in the short term. The support is placed at 2140 which can be a stop loss of this trade.

Lupin Daily Chart NSE: CMP 2215

CESC has a market of above 26k and decently liquid to trade. With a P/B ratio of 2.33 and TTM PE of 18.93 compared to sector PE of 25.59, the stock looks attractive. The earning is expected to grew 25-30 per cent in FY 25 and then a further 20 per cent in FY26 suggesting a buy rating. On the charts, the stock formed a falling wedge pattern- a bullish continuation pattern of the prevailing uptrend, suggesting prices to advance further. The stock is trading in a bullish channel with upper channel target as 220-225. One can buy the stock with stop loss below 183.

A triangle formation is seen on Blackbox daily chart and prices are trading above its key short-term moving averages. The immediate resistance is placed at 555-557 levels and once the level is cleared we can expect prices to advance towards 586 and then 600 mark. One can buy the stock for a holding target of 600-620 in the short term.

PSU banks and private banks are witnessing decent recovery after a long-dated correction. Federal bank on NSE has formed a rounding bottom pattern and closed above its 20 and 50 days EMA levels. The stock has a moderate resistance at 194 levels with prices has a potential to move towards 205. The weekly chart under formation is showing strong traction and may see buy on dips. We prefer buy on dips around 187-188 range for a short-term target of 205-210 for the stock. The stock may see participation along with recovery of banking stocks.