Market Trading Guide: Paytm, Network18 among 8 stock recommendations for Wednesday

After a prolonged downtrend, the stock has gained positive momentum in the recent past; with stability to unlock further upside potential till Rs 1710

(Amit Trivedi, CMT, Technical Analyst - Institutional Equities, YES SECURITIES)

The stock has given a breakout of a ‘Previous Supply Zone’ on the daily charts with a bullish candlestick. The overall structure of the counter is very bullish, as it is trading above all of its important moving averages. In addition, the Technical indicator Ichimoku cloud suggests that the price is trading above the cloud, which shows a bullish trend in the counter

A momentum indicator RSI (14) is reading above 60 levels, which suggests a bullish move for the near term

(Ashish Katwa, Research Analyst, Bonanza Portfolio)

On a daily chart, after a long BEARISH rally, the stock has given a breakout on the upside of Falling Supply Trend line with good volume, which indicates a change in trend. Stock is trading above its 21 and 50-day exponential moving averages on the daily time frames, which is positive for the prices in the short term

The Technical indicator Ichimoku cloud suggests that the price is trading above the conversion & base line, which points out positive strength. Momentum indicator RSI (14) is reading above 50 levels, which suggests a bullish move for the near term

(Ashish Katwa, Research Analyst, Bonanza Portfolio)

The weekly timeframe chart of MRPL indicates sharp upside bounce so far this week, after showing a consolidation movement last week. After moving into a narrow band over the last 5-6 weeks, the stock price has witnessed an upside breakout at Rs 87-Rs 88 levels and is currently trading higher.
Bullish chart patterns like higher tops and bottoms are intact as per weekly data and the stock price is now moving up after forming a new higher bottom in the mid part of August. Weekly 14 period RSI has turned up from the upper 65 levels signaling strengthening of upside momentum

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

After witnessing a decisive upside breakout of the strong overhead resistance at Rs 135 levels in the early part of August, the metal stock has moved down later in the last few weeks towards the prior upside breakout area. A sustainable buying has emerged on Tuesday from near the support as per the concept of change in polarity. This is indicating a ‘buy on dips’ opportunity. Weekly RSI has turned up from near upper 60 levels

(Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

Since listing in November 2021 at around Rs 1900, prices have been in steady downtrend till November 2022 and made a bottom around Rs 450. Post that, prices have rallied towards Rs 900 in June.

Now, the stock has been making a higher high and higher low structure as per the Dow theory, which is a bullish sign. Prices are trading above the 20- and 40-day EMA at Rs 838 and Rs 824, respectively, suggesting the trend is bullish in near term. RSI is also above the 50 mark suggesting bullish momentum

Near term resistance is at Rs 920, a sustained move and close above Rs 920 will be a bullish sign and then prices could head higher towards Rs 1000 mark. Supports are at Rs 820 followed by Rs 750. As of now looks like prices could consolidate between Rs 920 and Rs 750 and eventually break higher and go towards Rs 1000

(Priyank Upadhyay, Head Research, SSJ Finance & Securities)

Prices peaked in April 2022 around Rs 115 and since then they were in steady downtrend and made a low around Rs 50 in March. After making a low, prices have rallied towards Rs 68 and from there again fell towards Rs 55 in July.

Now prices are back to Rs 68 levels and with above average volumes suggesting to break higher towards Rs 78/80 zones. RSI at 71 is showing strong bullish momentum. Prices have also broken above the falling trendline from December 2022 highs around Rs 66, which is a positive development. Thus, we expect the stock to march higher towards 78/80 zones in near term

(Priyank Upadhyay, Head Research, SSJ Finance & Securities)

Prices are back to November 2022 highs around Rs 560 after making a low around Rs 400 in March 2023. Since the lows stock has rallied 40% in just 5 months and now is facing resistance around Rs 560. Near-term resistance is at Rs 560/600 zones where stocks have faced significant resistance in the past. Prices are above 20- and 40-day EMA at Rs 536 and Rs 515 suggesting the trend is bullish. RSI is at 57 and is forming a potential negative divergence, which suggests loss of momentum at higher levels. It looks like prices could correct lower towards 40-day EMA at Rs 515, which will act as support in near term. Thus, we suggest if anyone is long from lower levels to book profits here at current levels.

(Priyank Upadhyay, Head Research, SSJ Finance & Securities)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)