According to Rupak De, Senior Technical Analyst at LKP Securities, positive market sentiment is creating selective high-conviction breakout opportunities. De identifies Aegis Vopak, Lodha, and Aurobindo Pharma as top short-term picks. These stocks show solid daily and weekly chart breakouts, bullish RSI crossovers, and strong positions above key moving averages, positioning them for notable gains.
The index has risen over the past four weeks from 23,070 to 24,378, nearly 6 percent. On the daily chart, it has broken out of consolidation, indicating improved bullish sentiment. The RSI shows a bullish crossover on both daily and weekly charts. Immediate resistance lies at 24,400, aligned with the 50-week EMA. A sustained move above this level could spark a stronger rally, while a drop below 24,000 might question the recent advance. A buy-on-dips approach with a stop-loss at 24,000 targeting 24,800–24,850 appears suitable.
Indian IT stocks have seen sharp recovery over the last two sessions. The IT index formed a hammer pattern on the weekly chart, a bullish reversal signal. Daily RSI has entered positive crossover with positive divergence visible. Sentiment should stay positive, with resistance at 28,000. A decisive break above could lift the index toward 30,000, while support rests at 26,800.
The PSU Bank Index has fallen below a key moving average, with hidden negative divergence signaling weakening momentum. A drop below 8,400 may lead to deeper correction, though recovery above 8,500 could restore upward drive.
Three stocks have weakened after negative sector developments, showing channel or consolidation breakdowns and falling below short-term moving averages. It may be prudent to avoid them until clearer uptrend signals emerge.
Aegis Vopak has broken out of consolidation on the daily chart and moved above its 200-day moving average. RSI shows bullish crossover on daily and weekly timeframes. The short-term trend appears positive, with potential to reach 273, supported at 247.
Lodha has completed an ascending triangle breakout on the daily chart and crossed above its 200-day moving average. RSI bullish crossover and breakout from consolidation point to strengthening momentum. Short-term upside targets 1,125, with support at 1,017.
Aurobindo Pharma has broken out of a swing high on the weekly chart and a consolidation on the daily. RSI remains in bullish crossover and trending higher, with the stock holding above critical moving averages. Positive momentum should continue, targeting 1,700 while supported at 1,570.
