Bajaj Finance, Kirloskar Oil Engines eye up to 5% near-term upside
Bajaj Finance, Kirloskar Oil Engines eye up to 5% near-term upside
Nifty slips as volatility spikes; analysts flag caution near-term while traders eye breakout plays in Kirloskar Oil Engines and Bajaj Finance for potential upside.
Nifty ended Friday with sharp cuts amid selling pressure across the board, as consumer, IT and energy stocks dragged the indices lower. The India VIX again moved above its 200-DMA, signaling rising fear among market participants. On the technical front, the index slipped below its 20-DMA for the first time in several sessions and breached the 38.2% Fibonacci retracement of the prior up move from 24,571 to 26,341. With the index closing below the key support around 25,500, the near-term bias appears weak and there is potential for a decline toward the 25,000 mark in the short term. On the upside, immediate resistance is seen around 25,800, traders note.
Here are two stock ideas for Friday: Buy Kirloskar Oil Engines at Rs 1,375-1,385 with an upside of about 5% and a target of Rs 1,500, with a stop loss at Rs 1,320. Kirloskar Oil Engines is currently breaking out of a rounding bottom formation on the daily time frame. The RSI is trending upward, and the stock is trading above the 21-day EMA, with all key EMAs rising, indicating a bullish setup. Immediate support is around 1,320, and a hurdle could appear near 1,500.
Buy Bajaj Finance at Rs 1,024-1,026 with an upside of about 4% and a target of Rs 1,070, with a stop loss at Rs 990. Bajaj Finance is in a breakout of the downward-moving channel on the daily chart. The lower trend line has provided support, complemented by a bullish candlestick pattern, adding confidence to the setup. Traders will watch for follow-through buying and a sustained move above resistance levels to validate the trade ideas.
As the market stays choppy, a stock-specific approach and strict risk management remain essential. Investors should monitor the 25,800 resistance and 25,000 support as potential inflection points, while considering these names only as part of a diversified strategy.
