Equity markets experienced broad-based selling pressure on Friday following the India Meteorological Department’s (IMD) monsoon forecast, which projected rainfall at 90% of the long-period average (LPA). The prospect of deficient rainfall, alongside an increasing likelihood of an El Niño weather pattern, has raised investor concerns regarding elevated food inflation in the coming months.
However, downside risks remain partially mitigated by a recent moderation in crude oil prices and bond yields. Global market sentiment also found support in expectations of a potential diplomatic breakthrough between the US and Iran, which sparked a rally in international markets.
Analysts note that near-term investor attention will now shift toward crucial domestic triggers. The upcoming Reserve Bank of India (RBI) monetary policy decision and the release of gross domestic product (GDP) data are expected to provide clearer insights into India's inflation trajectory and overall economic momentum.
Technical Stock Picks for Monday
Despite the broader market volatility, technical analysts have identified two stocks showing strong structural setups for the upcoming trading session.
1. YES Bank
- Action: Buy
- Current Market Price (CMP): Rs 23.22
- Stop Loss: Rs 22.50
- Target: Rs 25.00
YES Bank is demonstrating strong bullish momentum following a decisive breakout above a key horizontal resistance level at Rs 22.02. This price action is supported by significant volume expansion, confirming genuine market participation. The stock is trading cleanly above both its short- and long-term exponential moving averages (EMAs), which are fanning out in a bullish alignment. Additionally, the Relative Strength Index (RSI) has risen above 60, signalling accelerating upward strength toward the descending trendline.
2. NBCC (India) Limited
- Action: Buy
- Current Market Price (CMP): Rs 100.30
- Stop Loss: Rs 95.00
- Target: Rs 110.00
NBCC is exhibiting a strong bullish reversal pattern. The price has broken above multiple short-term EMAs and is currently testing its long-term EMA near Rs 101.30. This upward shift is backed by a notable surge in trading volume, indicating a clear influx of buyers at these levels. Meanwhile, the RSI has crossed above the 60 threshold, confirming accelerating positive momentum and a structural turnaround from its recent bottom.
Analysis provided by Virat Jagad, Senior Technical Research Analyst at Bonanza Portfolio.
Disclaimer: The recommendations, suggestions, and opinions expressed by experts are their own and do not represent the views of this publication. Investors are advised to consult certified financial advisors before making investment decisions.
