Four Stocks with Strong Technical Setups: Weekly Trading Guide from HDFC Securities

The near-term market outlook remains constructive, with several stocks displaying promising technical setups supported by breakouts, strengthening momentum, and favorable moving-average configurations. Analysts Himanshu Gupta and Jainam of HDFC Securities, along with Nagaraj Shetti of HDFC Securities, have identified four stocks spanning the battery and EV mobility, infrastructure EPC, agrochemicals, and refining sectors that appear positioned for further upside based on their technical analysis. Each recommendation includes defined support levels and near-term price targets that the analysts believe offer attractive risk-reward profiles. The diversity of sectors represented reflects how technical breakouts are being spotted across different corners of the market rather than being concentrated in a single theme.

Buy: Amara Raja Energy & Mobility

Recommended Buy Price: Rs 970.50 | Upside Potential: 6–11% | Stop Loss: Rs 935 | Targets: Rs 1,025–1,080

Amara Raja Energy & Mobility, a leading manufacturer of lead-acid batteries that has been expanding into lithium-ion and electric vehicle mobility solutions, has executed a decisive range breakout, clearing the Rs 930–960 resistance band. The stock is currently trading well above both its 50-day and 200-day moving averages, which the analysts say confirms improving medium- and long-term trend strength. The Relative Strength Index (RSI) sits at approximately 51, remaining in neutral territory and suggesting there is room for additional gains without signaling overbought conditions. A successful retest of the Rs 950–960 level as support would further reinforce the breakout structure, according to the analysis.

Buy: Kalpataru Projects International

Recommended Buy Price: Rs 1,360 | Upside Potential: 5–10% | Stop Loss: Rs 1,315 | Targets: Rs 1,425–1,500

Kalpataru Projects International, an EPC (engineering, procurement, and construction) company engaged in power transmission, buildings, and infrastructure projects, has broken out of a consolidation phase, moving above the Rs 1,330–1,350 resistance area. The stock is trading above its 20-day, 50-day, and 200-day moving averages, with its shorter-term moving averages having turned bullish. With an RSI reading near 52, the analysts note there is adequate room for momentum to build further. A sustained move above the Rs 1,365–1,400 range could confirm the next upward leg.

Buy: Sumitomo Chemical India

Recommended Buy Price: Rs 555 | Upside Potential: 8% | Stop Loss: Rs 530 | Target: Rs 600

Sumitomo Chemical India, a subsidiary of Japan's Sumitomo Chemical Company operating in agrochemicals and specialty chemicals, has been in a sharp uptrend over the past several weeks, forming a sequence of higher tops and higher bottoms. The stock is currently attempting to breach a previous swing-high resistance in the Rs 550–560 zone. Positive volume patterns alongside supportive RSI readings indicate strengthening momentum and a favorable setup for continued upside, the analysts observe.

Buy: Mangalore Refinery and Petrochemicals

Recommended Buy Price: Rs 180.50 | Upside Potential: 9% | Stop Loss: Rs 172 | Target: Rs 196

Mangalore Refinery and Petrochemicals (MRPL), a subsidiary of state-owned Oil and Natural Gas Corporation (ONGC) that operates a refinery in Mangalore, recorded a strong breakout following a brief downward correction and has sustained above its 200-day exponential moving average (EMA). The stock has formed a bullish higher bottom at Rs 161 and is attempting to break out of a multi-week trading range around Rs 182–183. Rising trading volumes during the recent upward move provide additional confirmation of the bullish setup, according to the analysts' assessment.