Market Trading Guide: Buy Paytm, Bank of Baroda and 2 more stocks on Tuesday for up to 13% gains

Impact of India’s stellar Q2 GDP growth of 8.2% did not last long for Indian headline indices as Nifty took a U-turn from its lifetime high of 26,325.80 to close in the red. The 50-stock index settled with a bearish candlestick on Monday, marking the third consecutive weak closing. Commenting on the day's action, Vatsal Bhuva, Technical Analyst at LKP Securities said that the day's lackluster closing indicates an extended consolidation at higher levels along with selling pressure. "Additionally, call writing at 26200 and 26300 suggests that the index may trade sideways in the short term with a mild bearish undertone. The immediate support is placed at 26100, with resistance at 26300, while positional support stands at 26000 levels," Bhuva said. Here are 4 stock recommendations for Tuesday: Stop Loss: 2.5% below CMP (Rs 1,226) Target: Rs 1,321 KPIT Technologies has delivered a trendline breakout after several weeks of compression, with price closing at ₹1,258.20 (+2.93%) and decisively moving above the downward sloping resistance. The breakout is supported by rising volumes and price holding above key short-term EMAs, indicating strengthening bullish intent. RSI at 62.65 reflects improving momentum without being overstretched, reinforcing the likelihood of a continuation move. As long as the stock sustains above the breakout zone, the structure remains positive. (Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio) Stop Loss: Rs 285 Target: Rs 305/315/328 Bank of Baroda is approaching a crucial breakout above the 295–297 resistance zone after forming a steady higher-high, higher-low structure, with price holding firmly above all major EMAs and momentum improving on rising volumes. The RSI remains in a strong yet non-overbought zone, indicating healthy bullish strength and room for continuation if the breakout sustains. A buy is suggested at above 297 with a stop-loss at 285, targeting 305 and 315 in the near term, and 328 on a positional basis. (Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio) Stop Loss: Rs 1,310 Target: Rs 1,450 A higher top higher bottom chart structure is visible, confirming a steady bullish trend. In Monday’s session, the stock closed above the strong resistance zone of 1350, supported by a bullish RSI crossover above 60 and an uptick in volume, indicating strong momentum. The price sustaining above its 20-day EMA reinforces underlying strength and buyer dominance. Based on current technical signals, the stock can be considered for a buy with a stop-loss at 1310 and a target of 1450, aligning with the trend-continuation setup. (Vatsal Bhuva, Technical Analyst at LKP Securities) Stop Loss: Rs 283 Target: Rs 316 The stock respected the 23.6% Fibonacci retracement level during its pullback, taking support in line with the broader swing move from 231 to 294. The price action is comfortably sustaining above its 20-day ascending moving average, reinforcing the underlying trend strength and active bullish momentum. Additionally, the RSI is in a bullish crossover with a hidden divergence, signaling a strong likelihood of continuation of the prevailing uptrend. (Vatsal Bhuva, Technical Analyst at LKP Securities) Stop Loss: Rs 114 Target: Rs 135 A cup and handle pattern breakout is visible on the weekly chart, indicating a strong bullish formation and suggesting further upside potential. The RSI is in a bullish crossover, reinforcing the positive momentum and supporting continuation of the upward trend. Additionally, the stock is sustaining above its 20-day EMA, reflecting underlying strength and consistent buyer interest at current levels. These technical signals collectively point toward a favorable setup, where dips are likely to be absorbed and the stock may witness a sustained move higher in the coming sessions. (Vatsal Bhuva, Technical Analyst at LKP Securities) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)