Chart check: Angel One turns bullish on BEML, BSE in short term

Angel One analyst Osho Krishan recommends two stocks to buy today for the short term: BEML and BSE.

Disclaimer: This article is written by Osho Krishan, chief manager - technical & derivative research, Angel One. Views expressed are his own. Readers' discretion is advised.

 

The Indian equity markets commenced the week on a subdued note and remained confined within a narrow 300-point range, reflecting persistent investor tentativeness. The benchmark index oscillated around the cluster of short and medium-term EMAs before eventually slipping below these key moving averages by the weekly close.

 

Amid continued hesitation at elevated levels, the Nifty50 index concluded the week on a negative note, declining 0.31 per cent to settle near the 24,175 zone. The cautious undertone highlighted lingering uncertainty and restrained participation across the broader market.

 

 

The technical setup continues to reflect hesitation and uncertainty in the directional trend, with the benchmark index oscillating between strong structural support near the 24,050 zone, marked by the golden retracement, and resistance around the 24,370 level, represented by the 200-DEMA.

 

On the downside, a decisive breakdown below the 24,050-24,000 support zone could trigger further weakness toward the 23,890-23,820 region, where the prevailing bullish gap is expected to provide a cushion.

 

On the contrary, the 24,350-24,370 zone is likely to act as an immediate resistance cluster. A sustained breakout above this hurdle would strengthen the outlook and potentially pave the way toward the 24,500 mark in the near term.

 

For now, the broader bias remains sideways to positive as long as the 24,050 golden retracement holds. Accordingly, market participants are advised to maintain a cautious approach, closely monitor these key technical levels, and align their positions with the evolving price action.

 

Going ahead, market participants are advised to closely track key triggers that could determine the near-term market trajectory. Developments on the global front are likely to act as catalysts, providing much-needed momentum and greater clarity on the prevailing trend. Meanwhile, investors should refrain from taking aggressive bets and instead focus on selective opportunities within the broader market. Thematic and sector-specific movers are likely to offer relatively better performance amid the prevailing market environment.

 

Stocks to Buy Today, August 31 - Recommendations by Osho Krishan, Angel One

 

BEML

 

View: Bullish | Last close: ₹1,984

 

BEML has been in a secular uptrend, hovering above its 20-day EMA following a recent retracement phase. The stock has been in a cycle of higher highs and higher lows since inception and has shown strong movement. Furthermore, the SuperTrend, along with all major indicators, is strongly aligned with the primary trend, adding bullish momentum and suggesting a potential for a continued northward journey.

 

Hence, we recommend 'Buy' on BEML around ₹1,980-₹1,970 | Stop loss: ₹1,875 | Target: ₹2,150 - ₹2,200 

BEML stock chart

 

BSE

 

View: Bullish | Last close: ₹3,400

 

BSE has witnessed a strong correction in the last couple of trading months and has retraced towards the golden retracement of 61.80 per cent of the rally, coinciding with the 200 DSMA. In the past couple of sessions, the counter seems to have taken a breather and eventually tested the sloping trendline, indicating a potential breakout and a potential reversal in the trend in the near period. Additionally, the RSI has showcased a positive crossover from the oversold terrain, adding to the reversal signals in the counter.

 

Hence, we recommend 'Buy' on BSE around ₹3,400 - ₹3,360 | Stop loss: ₹3,140 | Target: ₹3,700 - ₹3,900 

BSE stock chart