Nifty may remain range-bound; analyst picks BLS International, Paytm

Hitesh Rathi of Angel One has recommended BLS International Services and Paytm stocks to buy today.

Disclaimer: This article is written by Hitesh Rathi, technical analyst - equity & derivatives, Angel One. Views expressed are his own. Readers' discretion is advised.

 

Nifty forms a Doji on the weekly chart.

 

It was a mixed week of trade for Nifty, as prices remained confined to a narrow trading range, with visibly no activity. Starting the week on a robust note, where gains were further amplified by a CAS-led spike. However, the remainder of the week was spent in a lacklustre fashion, where buyers defended relatively lower levels. A modest gap-down open on the final day weighed slightly on sentiment, resulting in a weekly wrap at the 24,570 mark, with gains of 0.77 per cent.

 

Given the absence of any meaningful price movement throughout the week, the overall technical structure remains largely unchanged. That said, the formation of a Doji candle on the weekly chart reflects a sense of indecision amongst participants at elevated levels. 

 

While the broader structure remains constructive. A decisive breakout above the 24,800-24,850 band would not only confirm a resumption of the prior uptrend, but also a breakout from the ongoing three-month trading range. Such a breakout would bring the higher time frames in alignment with the smaller time frames, paving the way for a sustained upmove.

 

Until then, adopting a strategy to buy any dips to strong support zones, instead of chasing momentum to the upside, remains a more viable strategy. From a levels perspective, immediate support continues to be placed in the 24,450–24,350 band, followed by a stronger cushion at the psychological level of 24,000.

 

On the upside, immediate resistance is placed in the 24,650-24,750 mark, followed by a stronger hurdle in the 24,800-24,850 band.

 

The broader continue to witness a bout of profit booking, clearly reflected in the hesitation exhibited by the Midcap index near its all-time highs. As highlighted in our earlier commentaries, we continue to advocate a wait-and-watch approach until greater clarity emerges regarding the market's immediate direction.  CHECK Stock Market LIVE Updates

 

Stock recommendations today:

 

BLS International Services | View: Bullish | Last close: ₹254

 

The technical setup of BLS International Services appears to be staging a turnaround, with the stock exhibiting early signs of a trend reversal after forming a Bullish Pattern Retest near its previous swing low and key support zone in the ₹225–220 band. A bullish brick reversal on a 3 per cent Renko chart also points towards the presence of strong buyers at key supports. This, along with a bullish cross over the 20-brick EMA over its 40-brick EMA, indicates improving short-term momentum and trend structure. 

 

Hence, we recommend a 'Buy' on BLS International Services around ₹254-252. Stop loss: ₹230 | Target: ₹270-275 

BLS International stock chart

 

Paytm | View: Bullish | Last close: ₹1,368

 

Following a prior Swing Breakout above the ₹1000–990 range, a multi-brick breakout on the Daily 3 per cent Renko chart suggests that Paytm stock may resume its previous advance. The ensuing price action indicates that the bullish structure is still strengthening, even though the original breakout had indicated a trend reversal.

 

A successful retest of the ₹1000–990 breakout zone further supports the bullish technical structure by demonstrating the strong buying interest at lower levels and validating the polarity principle, which states that a prior resistance zone has now changed into a support zone, indicating the development of progressively higher support levels on each retracement

 

Hence, we recommend a 'Buy' on Paytm around ₹1442-1440. Stop loss ₹1,370 | Target: ₹1,640-1,650 

Paytm stock chart