Kotak Securities Analyst Recommends Short-Term Investment Opportunities in RVNL and Two Other Stocks

Market Benchmark Nifty 50 Expected to Extend Gains Amid Positive Global Cues

The market benchmark Nifty 50, which ended at 24,331 on 6 May, is expected to extend its gains on Thursday, 7 May, amid positive global cues. Markets in Japan, South Korea, and Taiwan are at record highs on the prospect of a peace deal in the Middle East. The crude oil benchmark, Brent Crude, dropped by 8% to trade near the $102 per barrel.

According to Amol Athawale, VP - Technical Research at Kotak Securities, the uptrend formation in the Nifty 50 is likely to continue in the near future. Athawale highlighted that the market's uptrend wave is likely to continue as long as it trades above the crucial support zones of 24,200 and 24,100. On the higher side, the rally could extend till 24,500–24,600. However, below 24,100, the uptrend would become vulnerable, and traders may prefer to exit their long positions.

Stock Picks for the Short Term

Read also: Market Analysis: Key Stocks to Watch - Narayana Hrudayalaya, ABB India, Federal Bank, Premier Energies, Ather Energy and More

Athawale recommends the following three stocks to buy for the next 1-2 weeks:

Cummins India

Athawale highlighted that on the weekly scale, Cummins India share price is in a rising channel chart formation with higher high and higher low series pattern. The stock witnessed a steady recovery from trend line support levels, and the technical indicator RSI is also indicating a further uptrend from current levels, which could boost the bullish momentum in the near future. For positional traders, ₹5,120 would be the decisive level. Trading above this level will continue the uptrend formation till ₹5,675. However, if it closes below ₹5,120, traders may prefer to exit from trading long positions.

Read also: FirstClub Secures $55 Million in Funding from Peak XV, Sofina, and Other Investors 9 Months After $22 Million Series A Round

Rail Vikas Nigam (RVNL)

Athawale said after a sharp uptrend, RVNL shares witnessed a bit of selling pressure, but eventually, their downward momentum paused, and they have found support. On daily charts, the stock has formed a cup and handle kind of formation, and a fresh breakout from the resistance zone is very likely to occur in the coming trading sessions. As long as the stock is trading above ₹292, the bullish texture is likely to continue. Above this level, the stock could move up to ₹325.

Eternal

According to Athawale, Eternal share price is now consolidating within a symmetrical triangle pattern on the daily chart, indicating that bullish momentum could continue in the near term. The presence of higher lows highlights sustained buying interest and underlying strength, suggesting a potential breakout ahead. For traders, the key level to monitor is ₹245, which acts as immediate support. If the stock holds above this level, the positive trend structure remains intact. A decisive move beyond the consolidation range may trigger further upside, with the stock likely to head toward the ₹275 level in the coming sessions.