'Buy' Paytm, Bank of Baroda & Rico Auto shares: LKP Securities analyst; Nifty shows short-term weakness

Indian equity benchmarks cooled from their all-time highs on Monday. The 30-share BSE Sensex pack, which surged 452.35 points to a fresh record high of 86,159.02, closed 64.77 points down at 85,641.90. The broader NSE Nifty index slipped 27.20 points to finish at 26,175.75, after earlier touching a lifetime peak of 26,325.80.

Vatsal Bhuva, Technical Analyst at LKP Securities, noted, "Nifty closed with a bearish candlestick, indicating extended consolidation at higher levels along with selling pressure. Call writing at 26,200 and 26,300 suggests the index may trade sideways in the short term with a mild bearish undertone. Immediate support is at 26,100, resistance at 26,300 and positional support stands at 26,000 levels."

Among broader indices, NSE MidCap100 remained flat at 61,043.40, while SmallCap100 rose 0.25 per cent to 17,874.70. For Tuesday's session, Bhuva has recommended short-term buying opportunities in One 97 Communications Ltd (Paytm’s parent), Bank of Baroda, and Rico Auto Industries Ltd.

'Buy' Paytm @ Rs 1,365 | Stop Loss: Rs 1,310 | Target: Rs 1,450

In today's session, the stock closed above the strong resistance zone of Rs 1,350, indicating strong momentum. The price sustaining above its 20-day EMA reinforces underlying strength and buyer dominance. Based on current technical signals, the stock can be considered for a 'Buy' with a stop-loss at Rs 1,310 and a target of Rs 1,450, aligning with the trend-continuation setup.

'Buy' BoB @ Rs 295 | Stop Loss: Rs 283 | Target: Rs 316

The stock has taken support in line with the broader swing move from Rs 231 to Rs 294. The price action is comfortably sustaining above its 20-day ascending moving average, reinforcing the underlying trend strength and active bullish momentum. Additionally, the RSI is in a bullish crossover with a hidden divergence, signaling a strong likelihood of continuation of the prevailing uptrend.

'Buy' Rico Auto @ Rs 123-120 | Stop Loss: Rs 114 | Target: Rs 135

The stock is sustaining above its 20-day EMA, reflecting underlying strength and consistent buyer interest at current levels. These technical signals collectively point toward a favourable setup, where dips are likely to be absorbed and the stock may witness a sustained move higher in the coming sessions.