Osho Krishan of Angel One recommends buying these two defense stocks today

Nifty Outlook

The Indian stock markets have stabilized following the decline in the previous trading week, with the benchmark index showing minimal changes in price activity.

The week commenced with a minor setback but swiftly found support and transitioned into a consolidation phase. It was a relatively calm week for trading, suggesting a period of respite as the Nifty50 closed marginally below 25000,with a 0.20 percent weekly correction.

The recent historical trends indicate that such a breather as constructive development and likely to pave the way for the primary trend in the comparable period. From a technical standpoint, the 50 DEMA has been a significant barrier in the short term, positioned around 25050-25080, and a decisive breakthrough above this level would be instrumental in accelerating the bullish momentum toward higher levels.

Additionally, the intermediate resistance zone is centered around 25250-25300, aligning with the 20 DEMA, and a strong breakthrough at this level could potentially trigger the next phase of the rally from a positional perspective. At the lower end, the recent low of 24800-24700 is expected to offer robust support and mitigate any potential setbacks.

However, a decline below this level could be disruptive, potentially leading to further correction, and would necessitate a comprehensive review with strong risk management. In the last few months, all such intermediate corrections were comfortably bought into, but this time we are a bit skeptical of repeating the same behaviour. Let's see how things pan out globally and

 

since we have kicked off the result season, the actual performance would get reflected in price action too.

Stock Recommendations:

NSE Scrip – HAL

View -   Bullish

Last Close – Rs 4,446.15

HAL has undergone a corrective phase from its peak of Rs 5,659 towards the 200 SMA on the daily time frame chart, coinciding with the previous breakout zone. In the last couple of trading sessions, the counter has seen an initial sign of reversal from the oversold terrain, suggesting a favorable risk-reward ratio for short-term investors.

Also, on the oscillator front, the 14-day RSI has seen a positive crossover, suggesting a potential upside move for the counter.

Hence, we recommend to 'Buy' HAL around Rs 4,420-4,400 | Stop Loss: Rs 4,150 | Target Price: Rs 4,840-4,900

NSE Scrip – MAZDOCK

View -   Bullish

Last Close – Rs 4,371

MAZDOCK has undergone profit booking, followed by a time-wise corrective phase after the vertical rally. Currently, the stock has seen some support near its 100 DEMA on the daily time frame chart, coinciding with the 50 percent Fibonacci retracement of the rally, showing a sign of respite from its corrective phase.

Simultaneously, the recent upward momentum has been underpinned by an increase in the average traded volumes and seems poised to continue its upward move in the comparable period.

Hence, we recommend to 'Buy' MAZDOCK around Rs 4350 | Stop Loss: Rs 3,980 | Target: Rs 4,900

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(Osho Krishan is a senior analyst of technical & derivatives at Angel One Ltd. Views expressed are his own.)