Top 2 Stocks to Watch Today

On Thursday, the Nifty opened 157 points higher and reached a new high of 22,619 in early trade but immediately began drifting lower. It sank to the day’s low of 22,304, which could act as a key support moving forward. Nifty recovered most of the losses in the last couple of hours to close 80 points higher at 22,515. Nifty decisively broke out of a three-day consolidation to close above 22,500 for the first time, supported by banks and IT names, a day ahead of the RBI rate decision.

Now, let’s shift our focus to the spotlight with the top two stocks to monitor this Friday:

Asian Paints (ASIANPAINT) – Rs 2,920.25

The stock has broken out of an ascending triangle with higher volume. It closed at the prior support, which acted as resistance today. It closed above the moving average ribbon and also above the 50 DMA. The Bollinger band’s squeeze indicates a possibility of an impulsive move. The MACD line is above the signal line and near the zero line. The RSI is poised to shift its range into the bullish zone. The KST and the Stochastic RSI have been in the bullish setup. The Elder impulse system has formed a strong bullish bar. It also closed at the 23.6% retracement level of the prior downtrend. In short, the stock registered a bullish breakout. A move above Rs.2924 is positive, and it can test Rs 3020.

IPCA Laboratories (IPCALAB) – Rs 1,275

The stock has broken out of a 31-day consolidation with higher volume recently. It formed a strong, bullish candle and closed at a new lifetime high. Before the breakout, it tested the prior breakout and formed a base. The moving average ribbon is in an uptrend and trading above all key moving averages, trading 7.91% above the 50 DMA. The weekly MACD has given a fresh, bullish signal. RSI took support at the 60 zone and bounced. The KST and the Stochastic RSI are in a bullish setup. The stock cleared all resistance as it is in uncharted territory. In short, a move above Rs.1276 is positive, and it can test 1305.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.