Stocks to Watch: Chambal Fertilisers, Kirloskar Oil Engines, Vidya Wires, Usha Martin, NTPC Green Energy and More Face Market Focus on May 27

Market Correction Triggers Profit Booking; Short-Term Trading Ideas Emerge

On May 26, equity benchmarks experienced a profit booking-led correction after two days of gains. The market breadth turned negative, with approximately 1,571 shares declining against 1,402 advancing shares on the National Stock Exchange (NSE). The market is likely to remain in a consolidation phase as long as it trades below Tuesday's high.

Short-Term Trading Ideas

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Amol Athawale, Vice President of Technical Research at Kotak Securities, suggests buying NTPC Green Energy, which has rebounded from a key demand zone, signifying renewed buying interest. The stock has formed bullish reversal patterns on both the daily and intraday charts, accompanied by a steady upward move. The Relative Strength Index (RSI) indicator points to strengthening momentum, indicating potential for further upside. The target price is Rs 110, with a stop-loss at Rs 99.

Another buy recommendation comes from Ashish Kyal, Founder and CEO of Waves Strategy Advisors, for Chambal Fertilisers & Chemicals. The stock has surged more than 3 percent in the previous session, indicating strong bullish momentum emerging in the stock. The momentum indicator KST (Know Sure Thing) has also crossed above its signal line and is sustaining above the zero line, indicating strengthening momentum. The target price is Rs 535, with a stop-loss at Rs 462.

Aditya Thukral, Founder & Analyst of AT Research & Risk Managers, suggests buying Vidya Wires, which has been in an uptrend with the formation of higher highs and higher lows. The stock has started moving in favor of a larger uptrend after a small correction and registered its highest-ever closing. The stock can be bought at current levels with a stop-loss at Rs 98.