There is a possibility of action in selected sectoral stocks in the Indian stock market on the second trading day of the week. Based on mixed signals from global markets, inflows from institutional investors (FIIs/DIIs) and technical breakouts, leading brokerage houses and technical analysts have prepared a list of 20 select stocks for intraday traders and short-term investors.
Strong company of railway and defense sector in this list BEML LTD and life insurance giants HDFC Life Are in the center of main attraction. Apart from these, opportunities for momentum trade are seen in largecap and midcap shares of auto, metal, IT and banking sectors.
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BEML Limited: BEML is continuously forming higher high and higher low formation on the technical charts due to strength in Railway Infrastructure, Metro Coach Supply and Defense Equipment orders. According to technical analysts, the stock is trading above its 20-day and 50-day exponential moving averages (EMA). With the volume breakout, a sharp upside move is expected in the short-term.
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HDFC Life Insurance: The insurance sector is showing steady premium growth and clear signs of breaking out of the recent consolidation range. The stock remains attractive in terms of risk-reward due to long buildup in derivative data and solid support at lower levels.
List of 20 stocks prepared by analysts and technical research desk on the basis of different sectors:
| Sl. | stock name | Sector | View/Action | potential target | Stoploss (SL) |
| 1 | BEML LTD | Defence/Railways | Buy (Momentum Breakout) | ₹2,180 – ₹2,220 | ₹2,040 |
| 2 | HDFC Life | Insurance / BFSI | Buy (Pullback Buying) | ₹560 – ₹575 | ₹525 |
| 3 | Tata Motors | automobile | buy | ₹1,080 – ₹1,100 | ₹1,025 |
| 4 | State Bank of India (SBI) | Banking (PSU) | buy | ₹845 – ₹860 | ₹810 |
| 5 | Tata Steel | metal | buy | ₹160 – ₹165 | ₹149 |
| 6 | Bharat Electronics (BEL) | defense | buy | ₹325 – ₹335 | ₹298 |
| 7 | ICICI Bank | private banking | buy | ₹1,260 – ₹1,280 | ₹1,210 |
| 8 | Infosys | IT | buy | ₹1,960 – ₹1,990 | ₹1,890 |
| 9 | Coal India | Energy/Mining | Buy (Dividend Support) | ₹530 – ₹545 | ₹498 |
| 10 | Larsen & Toubro (L&T) | infrastructure | buy | ₹3,850 – ₹3,920 | ₹3,680 |
| 11 | Sun Pharma | Pharma | buy | ₹1,860 – ₹1,890 | ₹1,795 |
| 12 | Hindalco Industries | metal | buy | ₹715 – ₹730 | ₹675 |
| 13 | ITC Limited | FMCG | buy | ₹520 – ₹530 | ₹492 |
| 14 | Jio Financial Services | NBFC | Buy (Range Breakout) | ₹345 – ₹355 | ₹320 |
| 15 | NTPC | Power | buy | ₹430 – ₹442 | ₹405 |
| 16 | Titagarh Rail Systems | railway wagon | buy | ₹1,580 – ₹1,620 | ₹1,490 |
| 17 | Federal Bank | private bank | buy | ₹205 – ₹212 | ₹192 |
| 18 | Ambuja Cements | cement | buy | ₹665 – ₹680 | ₹630 |
| 19 | Dixon Technologies | Electronics/EMS | buy | ₹13,400 – ₹13,700 | ₹12,800 |
| 20 | Max Financial Services | Insurance/Holding | buy | ₹1,180 – ₹1,210 | ₹1,120 |
It is important to follow these basic precautions recommended by financial experts before entering into any intraday or short-term trade in the stock market:
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Strict Stoploss Mandatory: To protect capital during extreme market volatility, do not enter any trade without a stoploss.
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Vigilance on gap-up or gap-down: If a stock opens 2% to 3% higher (gap-up) as soon as the market opens, wait to buy on the dip (fall) instead of chasing immediately.
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Position Sizing: Invest only a limited portion of your total trading capital in any one stock so that the risk is balanced.
(Disclaimer: Investing and trading in the stock market is subject to market risks. Please consult your SEBI-registered financial advisor before trading or investing in any stock.)
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