Market Trading Guide: Dr Reddy's Labs, 3 smallcaps are stocks to buy on Tuesday. Sell view on this largecap

Economic Times

4 days ago

Buy Allied Blenders at Rs 477-478 | Upside: 6%
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Buy Navin Fluorine at Rs 5,102.50 | Upside: 5%
Sell ONGC Aug futures at rise of Rs 240-241 | Downside: 3%
Buy Dr Reddy's Labs Rs 1,280-1,290 | Upside: 5%
Buy Syngene at Rs 690-680 | Upside: 7%
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India's headline indices began the week on a negative note falling for the third session in a row. The weakness was on account of selling pressure in IT, banks and realty socks. During the session, the Nifty faced resistance around the 50-EMA and remained below it until the close.Commenting on the day's action, Rupak De, Senior Technical Analyst at LKP Securities said that the index fell below 24,700 amid rising weakness in the market, indicating a bear grip. 'The RSI continues to support the bears with its negative crossover. In the short term, the index may remain under pressure, with a possibility of slipping towards 24,550. On the higher end, resistance is seen at 24,800 and 24,950,' De said.Here are 5 stock recommendations for Tuesday:Stop loss: Rs 461Target: Rs 505Allied Blenders and Distillers (ABDL) is exhibiting a higher high–higher low formation, signaling a continuation of the uptrend. In the recent session, it formed a strong bullish candle near the 9-EMA, underscoring robust buying interest at lower levels. As long as the stock sustains above Rs 461, the technical setup remains constructive. The immediate upside target is placed at Rs 505, supported by momentum indicators like RSI, which continues to hover in the bullish zone, and a healthy ADX, reflecting trend strength.(Drumil Vithlani, Technical Research Analyst at Bonanza)Stop Loss: Rs 4,977Target: Rs 5,275/5,350Navin Fluorine International has confirmed a breakout from a rounding bottom formation on the monthly chart, indicating sustained accumulation at higher levels. This bullish breakout is accompanied by a significant rise in volumes, highlighting strong institutional participation. The momentum is further validated by technical indicators across the daily and weekly timeframes, with the RSI trending upwards and price action consistently holding above key moving averages. As long as the stock maintains a close above Rs 4,977, the technical outlook remains constructive. In the near term, the stock is poised to test Rs 5,275, with an extended upside potential towards Rs 5,350.(Drumil Vithlani, Technical Research Analyst at Bonanza)Stop Loss: Rs 244Target: Rs 234The stock recently witnessed a breakdown from its consolidation phase, indicating weakness in the trend. It has also closed below its 20-day EMA, reinforcing the bearish sentiment. Additionally, the RSI is in a bearish crossover, further signaling negative momentum. Given these technical indicators, any upward move in the stock should be considered an opportunity to exit or initiate short positions. Traders are advised to use any bounce as a selling opportunity for lower target levels in the coming sessions.(Vatsal Bhuva, Technical Analyst at LKP Securities)Stop Loss: Rs 1,245Target: Rs 1,350The stock has witnessed a short-term consolidation breakout along with a falling trendline breakout on the daily chart, suggesting a shift in momentum. It is trading above both the 20-day and 100-day EMAs, reflecting underlying strength. Additionally, the RSI is in a bullish crossover, supporting positive momentum. With a favorable risk-to-reward ratio, one can consider buying the stock, placing a stop-loss at 1245 and aiming for a target of 1350.(Vatsal Bhuva, Technical Analyst at LKP Securities)Stop Loss: Rs 660Target: Rs 725The stock gave a consolidation breakout on July 17 and has since been sustaining above its 20-day EMA, indicating strength and positive momentum. In Monday's session, it also closed above its 100-day EMA, adding to the bullish sentiment. The RSI continues to hold in bullish crossover territory, suggesting ongoing buying interest. With these technical indicators aligning positively, the stock is expected to move higher and test its 200-day EMA zone in the near term, making it an attractive candidate for further upside.(Vatsal Bhuva, Technical Analyst at LKP Securities)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)