Market Trading Guide: Dalmia Bharat and GMR Infra Among Top Picks

Thursday's session of the Indian stock market exited in the negative, with pressure on selling that impacted stocks in IT, autos, and metals. The BSE Sensex tumbled by 322.08 points, or 0.42%, as it faded to close at 76,295.36, while the Nifty wasn't much better off—dipping 82.25 points, or 0.35%, to end the session at 23,250.10. Some analysts have suggested that the close might have been a bit exaggerated in terms of the overall selling, but they also note that it might be time for the indices to catch their breath after the recent run. Regardless, it seems that the Indian market should be regarded as sturdy and trending well overall.

Market Outlook

As per analysts, the Indian market has displayed a strong nature despite the weak signals coming from the global front. The Nifty opened down but soon zoomed back up, showing just how confident investors are. Yes, confident. Market experts tell us that short-term support or the Nifty is placed at about 23,100. And as long as it remains above that level, the market looks to be in a safe and sane uptrend.

The last few days have been much better for the bulls. Until last Thursday, the Nifty had repeatedly failed to clear and hold above 23,400. It had also consistently held above short-term support at 23,100. So yes, since I last wrote about the Nifty on Thursday, the Nifty has climbed and held above the two aforementioned major levels. It also managed to close above a level that looked like a bad-luck magnet.

Stock Recommendations

Dalmia Bharat Ltd (DLMIA)

Buy at: INR 1,857

Target: INR 1,950

Stop Loss: INR 1,810

Dalmia Bharat has escaped from a falling wedge pattern and has closed at INR 1,857.15, reflecting a gain of 2.20%. The stock trades above all major Exponential Moving Averages (20, 50, 100, and 200), indicating a strong bullish trend. The stock has an RSI of 64.76, which is a good level. The stock has decent buying volume supporting it.

A breakout above Rs 1,870 could take the share towards Rs 1,950 in the near term. Investors are advised to buy at current levels with a stop-loss at Rs 1,810 to mitigate downside risks.

GMR Airports Ltd (GMRINFRA)

Purchase at: 82.70 INR

Buy: 87 INR

Stop Loss: 80 INR

GMR Infra has successfully broken out of a bottoming pattern, rounding, and it closed at INR 82.70 with a gain of 4.90%. The stock trades above all the significant EMAs, which indicates a strong bullish sentiment. The RSI reads 74.40, which means that the momentum remains positive; this, coupled with some very nice volume trends, suggests that buying interest is continuing.

Resistance has been seen immediately at INR 85, and support is at INR 80. The stock has a good chance of testing higher levels if it can hold above INR 83. It is recommended that investors buy near the current price with a stop-loss set at INR 80 and a drive towards INR 87.