How should you trade Sundaram Clayton, BLS International Services, ICICI Bank on Friday?

As the market trends upward with some consolidation expected, investors are keeping an eye on the outcome of the RBI monetary policy meeting. Below are key trading recommendations for the near term:

On December 5, the market demonstrated a strong intraday recovery, with benchmark indices closing 1% higher. However, the market breadth was not as strong, with 1,285 shares advancing and 1,185 shares declining on the NSE. Despite this, the market is expected to maintain an upward bias, with a focus on the RBI policy meeting. Here are some top stock picks for traders to consider.

Top Buy Ideas

1. BLS International Services (CMP: Rs 420.35)

BLS International is approaching a breakout from a symmetrical triangle pattern. The stock has been consolidating just below its breakout level, signaling strong bullish potential. A decisive close above Rs 425 would pave the way for short-term targets of Rs 500 and Rs 540. Technical indicators like the RSI and Stochastic RSI show positive bullish momentum, further supporting this outlook. Immediate support is at Rs 405, offering a potential buying opportunity on dips.

Strategy: Buy

Target: Rs 500, Rs 540

Stop-Loss: Rs 386

2. Sundaram Clayton (CMP: Rs 2,561.55)

Sundaram Clayton has recently broken out of a descending triangle pattern on the daily chart, signaling strong buying interest. With increased trading volumes and an upward-trending RSI of 68.4, the stock is poised for further upward momentum. If the price holds above Rs 2,600, targets of Rs 2,800 and Rs 2,900 could be within reach. Immediate support at Rs 2,460 presents a good entry point for buying on dips.

Strategy: Buy

Target: Rs 2,800, Rs 2,900

Stop-Loss: Rs 2,400

3. EMS (CMP: Rs 833.85)

EMS is nearing a breakout from a descending triangle pattern, supported by increased buying interest. With the RSI trending upward at 58.78 and a positive Stochastic RSI crossover, the stock is likely to continue its bullish momentum. A decisive close above Rs 840 could propel the price towards Rs 960 and Rs 1,000. Strong support at Rs 800 provides a good buying opportunity on dips. Set a stop-loss at Rs 780 to minimize risk in case of a market retracement.

Strategy: Buy

Target: Rs 960, Rs 1,000

Stop-Loss: Rs 780

Other Notable Picks:

ICICI Bank: A steady performer in the banking sector, potential upside with focus on RBI policy.

BSE: Positive outlook for market exchanges amid market consolidation.

PCBL: Watch for potential breakouts in the near term.

Tech Mahindra: Strong in IT services, expected to show resilience.

Greaves Cotton: Benefiting from industrial recovery trends.

With these recommendations, traders can position themselves for opportunities as the market continues to consolidate and react to the upcoming RBI policy.

Disclaimer: It is advisable to consult with a certified financial advisor before making any investment decisions.