- You could capture 8‑12% upside on several NSE leaders while the market corrects.
- Key EMA and volume cues signal that the dip is structural, not panic‑sell.
- Sector momentum remains bullish for infrastructure, finance, and consumer‑durable names.
- Historical patterns show a 70% chance of a rebound after a 0.5‑1% pullback.
- Risk‑managed entry points are outlined for each stock, with clear stop‑loss levels.
You missed the last rally? That’s the perfect excuse to jump in now.
Why the NSE's 0.6% Slip Matters for Portfolio Risk
The NSE erased roughly 0.6% after a four‑day winning streak, with market breadth turning sharply: 1,909 losers versus 1,002 gainers. A breach of yesterday’s low could deepen the correction, but the broader macro picture remains supportive. Credit growth is steady, corporate earnings are beating consensus, and the RBI’s accommodative stance keeps liquidity ample.
From a sector lens, infrastructure and financial stocks are still riding the wave of government capex and rising consumption. Historically, a 0.5‑1% pullback after a multi‑day rally has preceded a 2‑3% bounce within the next ten trading days, especially when technical breadth improves.
Blue Star: Wedge Breakout Signals Fresh Upside
Blue Star (CMP Rs 1,974) shattered a long‑term wedge on Feb 2 and cleared a strong resistance trendline that also forms the neckline of a larger inverse head‑and‑shoulders pattern. All key EMAs (20, 50, 100, 200) sit below price with upward slopes, confirming a bullish bias.
Volume has consistently outpaced the 20‑day average, indicating genuine accumulation. A pull‑back to the Rs 1,900 zone should be treated as a buying opportunity. Targets are set at Rs 2,180 and Rs 2,300, with a stop‑loss at Rs 1,816.
Indus Towers: Triangular Consolidation Gives Way to Bullish H&S
Indus Towers (CMP Rs 474) emerged from a prolonged triangle in Dec 2025 and formed a bullish continuation head‑and‑shoulders on the 75‑minute chart. The breakout on Feb 9 was backed by a surge in volume, pushing price above all major EMAs.
Any dip to Rs 460 is a potential entry. Targets: Rs 490 and Rs 510. Stop‑loss: Rs 437.
Aditya Birla Sun Life AMC: Channel Breakout Fuels Momentum
The asset‑management arm broke above a sloping rectangular channel on Feb 10, then vaulted over a resistance line that doubles as the neckline of a long‑term inverse head‑and‑shoulders. The stock now trades above all EMAs with positive momentum indicators and robust volume.
Buy on retracements to Rs 850. Targets: Rs 918 and Rs 956. Stop‑loss: Rs 798.
Manappuram Finance: Bollinger Band Bounce Suggests Range Play
Manappuram Finance (CMP Rs 308.65) is holding above the middle Bollinger Band near Rs 300, forming a tight range between Rs 298‑313. Higher lows and an RSI hovering at 56 indicate growing strength without overbought pressure. DMI readings are neutral, and volume remains solid.
Target: Rs 328. Stop‑loss: Rs 295.
Ashok Leyland: Near‑All‑Time Highs Backed by Strong Auto Index
Ashok Leyland (CMP Rs 211.02) sits near its all‑time high, comfortably above the Supertrend support at Rs 195. The breakout above Rs 205 came with healthy volume, and the Nifty Auto index is in a parallel uptrend.
RSI is at 71, still in an elevated but sustainable zone, while MACD stays positive. Target: Rs 225. Stop‑loss: Rs 195.
RBL Bank: Double‑Bottom Revival Indicates Bottom‑Fishing Opportunity
RBL Bank (CMP Rs 317) completed a textbook double‑bottom around Rs 290, then surged above the 50‑day EMA (≈Rs 305). A strong bullish candle broke the Rs 310 resistance, confirming renewed buying pressure.
RSI at 60 and a fresh MACD crossover back into positive territory add conviction. Target: Rs 335. Stop‑loss: Rs 303.
Bajaj Finance: Higher‑Highs & EMA Alignment Points to Sustained Run
Bajaj Finance (CMP Rs 999.1) continues a higher‑high, higher‑low pattern. The price sits above the 200‑day EMA, a classic sign of long‑term strength. A falling trendline breakout was confirmed with a close above it, aligning 50‑, 100‑, and 200‑day EMAs.
Support at Rs 960 (previous swing low) offers a defensive entry. RSI at 60.05 signals steady momentum. Target: Rs 1,100. Stop‑loss: Rs 948.
Precision Wires India: Fibonacci Extension Targets Near‑Term Ceiling
Precision Wires (CMP Rs 278.95) broke a descending trendline after a consolidation phase, closing above the 20‑, 50‑, 100‑, and 200‑day EMAs. Volume expansion confirms fresh buying.
Fibonacci analysis places the next resistance between Rs 290‑308 (50%‑61.8% extensions). Target: Rs 308. Stop‑loss: Rs 270.
Max Financial Services: Rising Trendline Breakout Confirms Bullish Bias
Max Financial Services (CMP Rs 1,813.5) respects a clear upward‑sloping trendline, producing higher lows. The breakout above Rs 1,750 was supported by strong candles and volume, indicating institutional participation.
All major EMAs are bullish, reinforcing the trend. Target: Rs 1,900. Stop‑loss: Rs 1,725.
Investor Playbook: Bull vs. Bear Scenarios
Bull Case: If the market respects the previous day’s low and rebounds, the technical setups above become high‑probability entries. Expect sector‑wide upside, with infrastructure (Blue Star, Indus Towers) leading the charge and financials (Bajaj, RBL) delivering double‑digit gains.
Bear Case: A decisive break below the prior low could trigger stop‑loss cascades, pulling the Nifty below 17,500. In that scenario, focus on defensive positions – hold cash, consider short‑term hedges, and wait for a clear reversal signal (e.g., RSI crossing below 30 on the index).
Key definitions: EMA (Exponential Moving Average) gives more weight to recent prices, making it a leading trend indicator. Head‑and‑Shoulders is a reversal pattern; its neckline acts as a critical support/resistance line. Bollinger Bands measure volatility; price staying near the middle band suggests a balanced range. RSI (Relative Strength Index) above 70 signals overbought, below 30 oversold. MACD (Moving Average Convergence Divergence) crossovers confirm momentum shifts. Fibonacci extensions project potential price targets based on prior swing sizes.