Mumbai : Brokerage firm Bonanza has recommended Mphasis, Rico Auto Industries, and Tenneco Clean Air India as its top stock picks for today’s trading session, citing bullish technical breakouts, strong trading volumes, and positive momentum indicators.
The recommendations come after the Indian equity markets ended Wednesday on a weaker note, snapping a four-session winning streak as selling pressure in banking, financial, and information technology (IT) stocks dragged the benchmark indices lower.
Market Recap
On Wednesday:
- The BSE Sensex declined 210.08 points (0.27%) to close at 78,428.95.
- The NSE Nifty 50 fell 159.40 points (0.64%) to settle at 24,614.90.
Among sectoral indices:
- Nifty Realty emerged as the biggest loser, falling more than 2%.
- Nifty FMCG, Nifty Private Bank, and Nifty Bank also closed in negative territory.
In the broader market:
- Nifty MidCap Index declined 0.29%.
- Nifty SmallCap Index gained 0.23%, outperforming the broader benchmarks.
Top Stock Picks by Bonanza
1. Mphasis
Current Market Price (LTP): ₹2,460
- Recommendation: Buy
- Target Price: ₹2,630
- Stop-Loss: ₹2,390
According to Bonanza analyst Kunal Kamble, Mphasis has broken above an important technical resistance zone and is currently trading above its short-term moving averages, indicating a fresh bullish trend.
Key technical observations include:
- Relative Strength Index (RSI) has moved above 60, signalling improving buying momentum.
- Rising trading volumes support the breakout.
- Positive price action suggests further upside toward the ₹2,630 target.
2. Rico Auto Industries
Current Market Price (LTP): ₹156
- Recommendation: Buy
- Target Price: ₹175
- Stop-Loss: ₹145
Bonanza believes Rico Auto Industries has resumed its primary upward trend following a strong breakout.
Technical indicators highlighted include:
- Trading comfortably above all major moving averages.
- RSI remains in bullish territory.
- Higher trading volumes indicate fresh investor accumulation.
- Strong price structure suggests the ongoing rally could continue toward ₹175.
3. Tenneco Clean Air India
Current Market Price (LTP): ₹580
- Recommendation: Buy
- Target Price: ₹640
- Stop-Loss: ₹550
The brokerage has also recommended Tenneco Clean Air India, citing a bullish reversal pattern after the stock broke above a falling channel resistance.
Technical indicators include:
- Recovery above key short-term moving averages.
- RSI crossing above 60, indicating strengthening momentum.
- Increasing trading volumes supporting the breakout.
- Positive price action pointing toward a potential move to ₹640.
Technical Outlook
According to Kunal Kamble, all three stocks are displaying favourable technical characteristics, including:
- Bullish breakout patterns
- Strong momentum
- Healthy trading volumes
- Improving Relative Strength Index (RSI)
- Support above key moving averages
These indicators suggest the stocks may continue their upward momentum in the near term, provided broader market sentiment remains supportive.
Investor Note
The recommendations are based on technical analysis and short-term price trends rather than company fundamentals. Investors should monitor market conditions closely and strictly adhere to the suggested stop-loss levels to manage potential downside risks.
As always, investment decisions should be aligned with an individual’s risk appetite, financial objectives, and consultation with a qualified financial advisor before taking any trading positions.
