'Buy' Paras Defence, Piramal Enterprises & Welspun Corp shares: LKP Securities' analyst

Indian equity benchmarks settled lower on Monday, dragged by information technology stocks as investors traded cautiously ahead of an expected US Federal Reserve rate cut at its policy meeting this week. The 30-share BSE Sensex fell 119 points or 0.15 per cent to close at 81,786; while the broader NSE Nifty slipped 45 points or 0.18 per cent to end at 25,069.

Broader indices, however, witnessed gains. The NSE MidCap100 advanced 0.44 per cent and the SmallCap100 jumped 0.76 per cent.

For the next trading session on Tuesday, LKP Securities' Technical Analyst, Vatsal Bhuva, has given short-term trading recommendations on three stocks -- Paras Defence and Space Technologies Ltd, Piramal Enterprises Ltd and Welspun Corp Ltd.

'Buy' Paras Defence @ Rs 715-725 | Stop loss: Rs 690 | Target: Rs 775

The stock has delivered a strong close above its recent swing high as well as the 20-day exponential moving average (EMA), forming a bullish candlestick on daily charts, which signals renewed buying momentum. Supporting this positive setup, the RSI (Relative Strength Index) has entered a bullish crossover and is positioned above 60, indicating strengthening upside momentum and room for further gains. These technical indicators collectively indicate a favorable trend continuation, suggesting that the stock could witness sustained upward movement.

'Buy' Piramal Enterprises @ Rs 1,140 | SL Rs 1,099 | Target Rs 1,200

On daily charts, the stock has broken out of a falling channel consolidation, forming a strong bullish candlestick, which signals the end of the recent corrective phase. Additionally, the stock has reclaimed both its 20-day and 200-day EMA, reinforcing the strength of this breakout and indicating a shift back to a positive trend. Further supporting this setup, the RSI has entered a bullish crossover, reflecting improving momentum. These technical signals collectively point towards a potential continuation of upward movement in the near term.

'Buy' Welspun Corp @ Rs 920-910 | SL: Rs 875 | Target: Rs 975

The stock recently found strong support after a sharp rally from Rs 763 to Rs 994. Today, it formed a long bullish candlestick near Rs 875, aligning with its 20-day EMA, which indicates renewed buying interest. Furthermore, the daily RSI has moved above 60 with a bullish crossover, reinforcing the positive momentum, while a positive divergence on the weekly chart signals the potential for further upside in the near term.