Buy IndiGo stock, stay cautious on RailTel Corp, KPIT Tech shares, suggest YES Securities

Indian benchmark indices continued to settle higher on Wednesday on the back of strong domestic inflows, reforms and supportive global macros. However, Tariff concerns continue to persist among the traders. BSE Sensex gained 213.45 points, or 0.26 per cent, to settle at 81,857.84, while NSE’s Nifty50 added 69.90 points, or 0.28 per cent, to close at 25,050.55 for the day.
 

Select buzzing stocks including KPIT Technologies, InterGlobe Aviation (IndiGo) and RailTel Corporation of India are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Technical Analyst at YES Securities has to say about these stocks ahead of Thursday’s trading session:
 

InterGlobe Aviation | Buy | Target Price: Rs 6,600 | Stop Loss: Rs 5,700

IndiGo has witnessed a strong bullish surge over the past two weeks, breaking out decisively above the key resistance level of Rs 6,000-6,020 and sustaining above all major moving averages on the daily chart, signaling inherent strength. With the breakout zone (Rs 6,000-6,020) now acting as a support, any dips toward this range could present a buying opportunity for further upside. The stock appears poised to enter uncharted territory, with a potential near-term target of Rs 6,600 while a stop loss below Rs 5,700 would help manage risk. Given the bullish momentum, traders may consider entering on pullbacks for a favorable risk-reward setup.
 

RailTel Corporation of India | Caution | Resistance: Rs 375 | Support: Rs 340

RailTel Corp has been in a sustained downtrend, plummeting from its swing high of Rs 479. This selloff, characterized by the formation of lower tops and lower bottoms, has pushed the price below all its moving averages. Despite this weakness, a sign of a reversal is emerging as the daily momentum indicator, RSI, has bounced back from its oversold zone. However, the price chart has yet to confirm a reversal pattern. Looking ahead, the stock’s direction hinges on a critical support zone. If the Rs 340-342 level holds, an oversold bounce could be expected, potentially driving the stock back up to the Rs 370-375 range. Conversely, a failure to maintain this support would signal further weakness with the stock likely to fall toward the Rs 320 level.
 

KPIT Technologies | Caution | Resistance: Rs 1,300 | Support: Rs 1,180

For the past few weeks, fluctuations in KPIT Tech have remained within a narrow range. This lack of clear direction calls for a decisive breakout, either above Rs 1,300 or below Rs 1,180, to establish the next move. A drop below Rs 1,180 could lead to a decline towards Rs 1080 while sustained trading above Rs 1,300 might push the index up to Rs 1,450 levels. Investors should monitor these levels closely for potential trading opportunities. Additionally, volume trends may provide further insight into the strength of any breakout or breakdown.