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The Nifty continued its volatile ride. Following Wednesday’s swift decline, the index opened on a positive note and rallied to 16,946. However, yet again, its inability to cling to higher levels dragged the index into negative territory.

“The Nifty formed inside bar chart pattern (i.e. swung between its prior session’s high/low range), the said pattern indicates indecisiveness. Hence, follow-up action needs to be closely watched out. Stability is essential for any short-term bounce. The Nifty breadth and sectoral breadth turned mixed, suggesting stocks specific action is possible,” said Amit Trivedi, Technical Analyst – Institutional Equities, YES Securities.

Below are key stock recommendations for Friday:

Gujarat Gas

Buy near Rs 512-515

Stop Loss: Rs 492

Target: Rs 575

During the recent decline, the stock revisited its March month lower levels and recovery thereafter ensures immediate support near Rs 495. Sustenance above levels of Rs 500 could mean that the stock is due for mean reversion.

Analyst: Amit Trivedi, YES Securities

Bharat Electronics

Buy near Rs 232-234

Stop Loss: Rs 226

Target: Rs 247

After losing 12 per cent from the record high, the stock revisited its breakout zone near Rs 230. Stability at current levels could lift the stock till Rs 247 zone.

Analyst: Amit Trivedi, YES Securities

HDFC AMC

Buy between Rs 1,930-1,900

Stop Loss: Rs 1,840

Targets: Rs 2,300/2,400

Currently, trading at 3.5 SD level (based on statistical model). We have the possibility of mean reversion – relative outperformance in HDFC AMC from the current level. Hence, long recommendation. HDFC AMC broader range of Rs 1900-2400. Cumulative open interest as of May 5 was at 37 million shares (Highest OI). Above Rs 2,040/2,050, there is a possibility of sharp short covering in the May’22 series.

Analyst: Kruti Shah, Equirus

Sun Pharma

Sell between Rs 880-890

Stop Loss: Rs 920

Targets: Rs 800/790

On a monthly time frame, the stock is trading near the exhaustion zone. It has reacted sharply from the previous supply zone forming multiple crests near Rs 920-940. The stock is garnering weakness below Rs 900, suggesting an opportunity to create a short. Current open interest at 19 million shares against 25 million of six-month average indicates long unwinding.

Analyst: Kruti Shah, Equirus

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

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