Nalco, SPARC, Solar Industries: How should you trade these buzzing stocks

Stock indices saw another day of fall on Thursday amid weakness globally. The BSE Sensex dropped 542.10 points, or 0.82 per cent, to end at 65,240.68. The NSE Nifty dropped 144.90 points, or 0.74 per cent, to settle at 19,381.65.

Select stocks such as Solar Industries India, National Aluminium Company (Nalco) and Sun Pharma Advanced Research Company (SPARC) are likely to remain under the spotlight today. Here is what SMIFS Research has to say on these stocks ahead of Friday's trading session:

Solar Industries India | Buy | Target Price: Rs 4,500 | Stop Loss: Rs 3,300
After a minor retracement from its recent highs, Solar Industries is seen reverting back exactly from its 50 EMA. Leading indicator stochastic is seen rising steadily after making double bottom in the oversold zone. The RSI is seen turning around from the previous bottom, suggesting pullback towards Rs 4,500 level. Based on this, one can ‘Buy’ Solar Industries on dips in the price range of Rs 3,800-3,600 for the target of Rs 4,500.

National Aluminium Company | Buy | Target Price: Rs 122 | Stop Loss: Rs 71
After a prolonged consolidation with a positive bias, Naclo is finally breaking out an ascending wedge pattern. A steadily rising RSI and the turning around of ADX from the bottom are suggesting continuation of bullish momentum. The direction of the ADX is suggesting that the stock is about to initiate a full-length up move towards the Rs 122 level. Based on the aforementioned explanations, we recommend buying Nalco on dips in the price range of Rs 90-86 for the target of Rs 122.

Sun Pharma Advanced Research Company | Buy | Target Price: Rs 295 | Stop Loss: Rs 190
After a prolonged consolidation between downward sloping and converging support and resistance lines, SPARC is finally seen breaking out a descending wedge. A steadily rising volume oscillator OBV coupled with a rising RSI are suggesting continuation of bullish momentum towards the Rs 295-level. The direction of ADX, which is turning around from the bottom, suggested the stock is about to initiate a full-length up move. Based on the aforementioned explanations, we recommend buying SPARC on dips in the price range of Rs 230-220 for the target of Rs 295.


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

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