Market sentiment has remained under pressure in recent sessions, particularly following heavy selling in information technology stocks. After five consecutive sessions of buying, foreign institutional investors turned net sellers again, offloading shares worth approximately Rs 739.5 crore on Friday.
Amid the lack of directional clarity in the broader market, investors are seeking stocks with limited downside risk and potential for upside. In this context, Akash Shah, Technical Research Analyst at Choice Equity Broking, has recommended buying Minda Corporation and Bajaj Consumer Care based on technical parameters.
Selective Stocks in a Weak Market
During phases of market decline or uncertainty, not all stocks move uniformly. Certain stocks hold their levels during corrections and begin to show signs of gradual strength, which, according to technical analysis, may position them for potential upward movement.
Shah stated that Minda Corporation and Bajaj Consumer Care are exhibiting such characteristics, with charts indicating gradual strengthening.
Minda Corporation: Range-Bound Movement with Breakout Watch
Minda Corporation previously witnessed a b upward move but has recently been trading within a narrow range. The stock has repeatedly approached the Rs 610 level without sustaining a move above it, indicating resistance at that level.
However, each decline has been met with support at progressively higher levels, suggesting incremental buying at lower levels and easing selling pressure.
From a technical perspective, the stock is trading above its 50 and 100 exponential moving averages, a position generally associated with strength. The 200 exponential moving average is acting as a b support level. This indicates that the medium- and long-term trend remains intact. Trading volumes remain normal, with no indication of heavy selling at higher levels.
According to Shah, a b close above Rs 610 accompanied by higher volumes could lead to a move towards Rs 650 to Rs 660. On the downside, the Rs 585 to Rs 580 zone is expected to act as support. The buying strategy is considered suitable for investors seeking limited risk exposure.
Bajaj Consumer Care: Weekly Trend Reversal Signals
Bajaj Consumer Care had been in a prolonged phase of weakness, but its weekly chart now indicates a clear change in trend. The stock is forming higher highs and higher lows, a structure associated in technical analysis with the beginning of a new uptrend. It has decisively crossed the Rs 345 to Rs 350 zone, which had acted as a major resistance level for several years.
Following this breakout, the stock has witnessed buying interest. It is currently trading above its 50, 100 and 200 weekly moving averages, all of which are sloping upward. In technical analysis, such alignment is considered indicative of sustained long-term strength.
The Rs 345 level, which previously acted as resistance, may now function as support. As long as the stock sustains above this level, the upward structure is considered intact.
Shah has identified Rs 400 as the first target, followed by Rs 425. The stock is viewed as suitable for investors with a medium-term trading perspective.
