Top three stock picks by Ankush Bajaj for 2 September
Kaynes Technology India Ltd. (KAYNES) — current price: ₹6,600
Why it’s recommended: Kaynes has delivered a decisive breakout on the daily chart, closing firmly above its recent resistance of ₹6,520. The daily RSI stands at 66, reflecting healthy bullish momentum, while the MACD is strongly positive at 99, signaling sustained upside drive. The ADX at 15 indicates that the trend is in its early stages, leaving scope for strengthening as the rally builds. As long as the stock holds above ₹6,520 the breakout remains valid, and the setup favours continued upward movement in the near term.
RSI: 66 — bullish momentum confirmed
MACD: +99 — positive, supporting continuation
ADX: 15 — trend emerging, room to strengthen
Price action: Clean breakout above ₹6,520 with strong close
Risk factors: Trend strength (ADX) is still low, meaning volatility could cause sharp swings before trend matures.
Breakout may fail if volumes do not sustain; false break risk remains if global sentiment turns risk-off.
Broader market weakness (if Nifty slips below key supports) could cap upside momentum.
Buy at: ₹6,600
Stop Loss: ₹6,520
Target Price: ₹6,780
Dixon Technologies (India) Ltd. — current price: ₹17,582
Why it’s recommended: Dixon is showing strong technical momentum. On the daily chart, the RSI at 67 confirms bullish strength, the MACD at +246 highlights powerful upside momentum, and the ADX at 19 indicates a trend that is strengthening further. On the 45-minute chart the stock has given a rectangle breakout at ₹17,135, suggesting follow-through potential with higher targets in the short term.
Key metrics: RSI: 67 — bullish, momentum building
MACD: +246 — strong upward drive
ADX: 19 — improving trend strength
Chart pattern: Rectangle breakout at ₹17,135, validating bullish continuation
Risk factors: Being in the higher valuation zone, the stock could face volatility on profit-taking.
ADX is still in the early strengthening phase; sharp reversals cannot be ruled out if breakout volume thins out.
Sensitive to broader market moves; weakness in Nifty could weigh on follow-through.
Buy at: ₹17,582
Stop loss: ₹17,425
Target price: ₹17,900
Eicher Motors Ltd. — current price: ₹6,280
Why it’s recommended: Eicher Motors has exhibited robust strength, closing at a lifetime high in the last session. The stock has also covered the previous two red candles with strong volumes, reinforcing buyer conviction. On the daily chart, the RSI at 79 reflects strong bullish momentum, the MACD at +155 confirms powerful upside traction, and the ADX at 35 highlights a well-established trend. This alignment of indicators suggests continuation of the uptrend in the near term.
Key metrics: RSI: 79 — extremely strong bullish momentum
MACD: +155 — sustained upside drive
ADX: 35 — strong trend strength
Price action: Closed at lifetime high; bullish engulfing move over last two red candles with volume support.
Risk factors: RSI is in the overbought zone; short-term pullbacks may occur.
At lifetime highs, the stock has limited historical resistance, but profit-taking risk is elevated.
Broader market volatility can impact momentum even in strong individual stocks.
Buy at: ₹6,280
Stop loss: ₹6,215
Target price: ₹6,410
How the market performed on Monday
Sectoral performance was broadly positive. The PSE index surged 1.78%, metals added 1.64%, and the auto index jumped 0.95%, showcasing strength in cyclicals and industrials. The only laggard was the pharma sector, which eased 0.12%.
In stock-specific action, Bajaj Auto stole the spotlight with a sharp 3.89% rally, followed by M&M, which advanced 3.62%, and Tata Motors, up 3.16%, all benefiting from sectoral momentum. Meanwhile, select heavyweights limited broader gains — Sun Pharma fell 1.96%, ITC slipped 0.95%, and Hindustan Unilever edged lower by 0.39%.
Nifty technical analysis: daily & hourly
Nifty ended 1 September on a strong note, closing at 24,625.05 with gains of 198 points (+0.81%). The index successfully defended the key support at 24,344 – the neckline of the developing head & shoulders pattern – and rebounded sharply. However, it still trades marginally below the 20-DMA (24,694) and 40-DEMA (24,812). A sustained move above these averages is crucial to shift the broader setup decisively toward strength.
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Momentum indicators are showing early signs of improvement. The daily RSI has bounced to 45 from oversold levels, while the MACD remains negative at –69 but is flattening, suggesting that downside momentum is losing steam.
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On the intraday scale, Nifty closed above both the 20-HMA (24,547) and 40-HEMA (24,667), indicating short-term buying support. Hourly RSI has improved to 50, and the MACD at –43 is recovering from deep negative territory. This combination points toward the potential for further near-term upside.
Derivatives data reinforces the shift in sentiment. Total Put OI (19.22 crore) now exceeds Call OI (17.03 crore), leaving a positive OI differential of +2.19 crore. Put writing was aggressive with an addition of 8.78 crore contracts, especially at the 24,500 strike, making it a strong positional base. Meanwhile, Call unwinding of 2.28 crore at 24,650 has eased immediate overhead pressure. The 25,000 strike continues to hold the heaviest Call OI, making it the major resistance ceiling.
Outlook: As long as Nifty sustains above 24,500, the bias remains positive with potential upside toward 24,800-25,000. A breakout above 25,000 could open the way for 25,250-25,400, while a close below 24,344 would negate the recovery and revive a deeper bearish phase.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
