Stocks to buy: IndusInd Bank, KPTI Tech and Just Dial on investors' radar

Synopsis

Equity indices faced losses for the third consecutive session due to economic growth concerns. Notable stock movements included KPIT Tech falling 4.8%, IndusInd Bank 4.2%, and Just Dial 3.8%. Analysts suggest monitoring support and resistance levels for potential reversals or further declines.

Equity indices nursed losses for the third consecutive session on Friday, in lockstep with a weak trend in global equities as concerns over economic growth and quarterly earnings sapped risk appetite.

Stocks that were in focus include names like KPIT Tech, which fell 4.8% and IndusInd Bank, which declined 4.2% and Just Dial, whose shares dropped 3.8% on Friday.

Here's what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.

IndusInd Bank

As the market continues its downward trend, IndusInd Bank has emerged as one of the most underperforming stocks, declining nearly 30% over the past three months. The weak structure remains evident, with the nearest support level at 920 and a major support level at 820.

Any pullback rally is likely to encounter resistance around the 20-day moving average (20 DMA), currently positioned at ₹966. The overall trend will only show signs of reversal if the stock regains the 1,000 mark.

KPIT

The stock has broken down below a trend line support, indicating weakness in the current structure as it trades below all major moving averages. The critical support zone lies between 1290-1300, which will be pivotal for the stock's future direction. If the price holds above this level, it could signal potential reversal.

On the upside, the first resistance is at 1434, where the 50-day moving average (DMA) is currently positioned. A break above this level could lead to a move towards the next key target at 1600, where the 200-day moving average is located.

A break above this level could pave the way for a move towards the next key target at 1600, where the 200-day moving average is positioned, representing a crucial point for the stock's medium-term potential.

Just Dial

The stock is currently trading within a range, following a pattern of lower lows and lower highs on the daily time frame. It is situated between key moving averages, with 1020 acting as immediate support, coinciding with the 20-day moving average (DMA).

On the upside, 1100 serves as a significant resistance level, where the 200, 100, and 50 DMAs converge. A break above 1100 would signal the potential for a bullish move, targeting the next resistance at 1166.

On the downside, 1000 is a crucial make-or-break zone; a breakdown below this level could trigger further weakness, potentially driving the stock towards the 920 level.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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