Nifty Surges on Bullish Reversal; HDFC Securities Recommends Two Stocks

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AuthorRiya Kapoor|Published at:
Nifty Surges on Bullish Reversal; HDFC Securities Recommends Two Stocks
Overview

The Indian benchmark Nifty 50 index has signaled a bullish trend reversal, recovering 1,770 points from its recent low. It has reclaimed crucial Exponential Moving Averages, suggesting sustained upward momentum. HDFC Securities has recommended buying Samvardhana Motherson and Bharat Forge, outlining specific price targets and stop-loss levels for both counter.

Nifty Index Shows Bullish Reversal

The Nifty 50 index has demonstrated a strong bullish reversal, staging a significant 1,770-point recovery from its recent swing low of 24,571. This impressive rebound has seen the index successfully reclaim levels above its 20, 50, 100, and 200-day Exponential Moving Averages (EMAs). This upward movement across multiple timeframes confirms a bullish trend reversal and suggests potential for further gains. Key support for the Nifty is identified in the 25,500–25,650 band, while immediate resistance lies at 25,863 and a more significant hurdle at 26,373.

HDFC Securities Stock Recommendations

Analysts at HDFC Securities have identified two distinct opportunities with buy recommendations on Samvardhana Motherson International Limited and Bharat Forge Limited. Samvardhana Motherson International is advised for purchase at ₹120, with a strict stop-loss set at ₹108 and a price target of ₹137. The stock has shown a breakout from a downward trend line, exhibiting a primary bullish trend characterized by higher tops and bottoms. It is trading above its long-term moving averages, supported by a daily Relative Strength Index (RSI) above 50 and a bullish crossover in its daily Moving Average Convergence Divergence (MACD) indicator.

Similarly, Bharat Forge Limited is recommended for buying at ₹1,515, with a stop-loss at ₹1,370 and a price target of ₹1,700. The share price has bounced back after finding support at the 100-day Exponential Moving Average (DEMA). The stock's primary trend is bullish, maintaining higher tops and bottoms and trading above key long-term moving averages. The daily RSI is above 50, indicating a sustained uptrend. The stock has also formed an inside bar candle on the daily chart following a price correction, signaling potential consolidation before further upward movement.

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