The Indian benchmark indices kicked off September with a strong performance, continuing their upward trajectory and setting new peaks as the month began. This marks the fourth consecutive month of gains for Indian markets, following an impressive rally of over 1 percent in August, nearly 4 percent in July, and 6.5 percent in June. The robust performance in 2024 has seen the markets deliver negative returns in just two months—January and May—resulting in a remarkable year-to-date (YTD) growth of over 16 percent.
As the new month unfolds, market experts remain optimistic about the continuation of this upward momentum. Despite concerns about a potential correction that some have anticipated, the general consensus is that any pullback is likely to be short-lived and not particularly deep. The resilience of the Indian markets, even in the face of global economic challenges, has been noteworthy, driven by strong domestic fundamentals, positive investor sentiment, and consistent foreign inflows.
Against this optimistic backdrop, brokerage house Progressive Shares has identified 11 technical stock picks for September, offering investors strategic opportunities to benefit from the ongoing market rally. These stock picks are based on technical analysis, identifying potential breakout patterns and strong upward trends that could deliver solid returns in the short to medium term.
Accelya Solutions India: According to the brokerage, the stock has already achieved a Rounding Bottom pattern breakout and has successfully completed its pullback move. The 12-month Moving Average (12MMA) is serving as a strong support level. An ADX reading of 32 indicates a robust trend is in place. Based on the pattern breakout, the target price is set at ₹2,577, and the brokerage recommends adding the stock on declines up to ₹1,670.
Advanced Enzyme Technologies: The stock has experienced a Cup and Handle pattern breakout, signalling a potential upward trend, noted the brokerage. This price breakout is further validated by a trendline breakout in the RSI, reinforcing the bullish momentum. Additionally, the ADX reading of 26.52 suggests a strong trend. Based on the pattern breakout, the target price is ₹717. Investors may consider adding the stock on declines up to ₹430, advised the brokerage.
Bajaj Finserv: Progressive Shares has observed a breakout in the NBFC stock from a Symmetrical Triangle Formation, confirmed by a trendline breakout in the RSI. The MACD has also provided a positive crossover, reinforcing the bullish sentiment. According to the pattern breakout, the target price is set at ₹2,500. The brokerage suggests adding the stock on declines up to ₹1,700.
Bannari Amman Spinning Mills: The brokerage highlighted that the stock has recently completed its pullback move following a breakout from a Symmetrical Triangle Formation. This breakout was confirmed by a trendline breakout in the RSI and an increase in trading volumes. Based on this pattern breakout, the target price is set at ₹89, with a recommendation to add the stock on declines up to ₹57.
Bharat Wire Ropes: Progressive Shares noted that the stock has experienced a breakout from a Flag and Pole Formation. The RSI, a leading indicator, has rebounded from its long-term trendline support, while an ADX reading of 48.97 suggests a very strong uptrend. Based on this pattern breakout, Progressive Shares has set a target price of ₹536, with a recommendation to add the stock on declines up to ₹273.
Cyient: The brokerage highlighted that the IT stock has broken out from a bullish continuation pattern, specifically a Flag and Pole Formation. An increase in volume supports the price movement, and with an ADX reading of 57.45, the presence of an extremely strong uptrend is confirmed. Following the pattern breakout, it has set a target of ₹3,390, with a suggestion to add the stock on declines up to ₹1,925.
Dalmia Bharat Sugar and Industries: According to the brokerage, the stock has recently broken out from a bullish Symmetrical Triangle Formation. This breakout is supported by a long-term trendline breakout in the RSI and an increase in volume, which confirms the price activity. Additionally, both the MACD and ADX indicators have shown a positive crossover. Based on the pattern breakout, the target price for the stock is ₹742. The brokerage suggests adding to the position on declines down to ₹450.
Excel Industries: The brokerage stated that the six-year consolidation period for the stock concluded with a breakout from a Symmetrical Triangle Formation. This price breakout was validated by a trendline breakout in the RSI and a surge in volume. The MACD has also shown a positive crossover. Based on the pattern breakout, it has set a target price of ₹2,567. The recommendation is to add the stock on declines down to ₹1,440.
GHCL: According to the brokerage, the stock has recently broken out from a bullish Flag and Pole Formation. This breakout was confirmed by a trendline breakout in the RSI and an increase in volume. Both the ADX and MACD indicators have shown a positive crossover. The target price based on the pattern breakout is ₹1,080. The brokerage recommends adding the stock on declines down to ₹650.
Kitex Garments: Progressive Shares highlighted that a congestion period spanning over six years concluded with a breakout from a Symmetrical Triangle Pattern. This breakout was supported by a long-term trendline breakout in the RSI and the highest-ever volume recorded during the month. The ADX reading of 23 suggests the start of a new trend. Based on the pattern breakout, the target price is ₹553. The recommendation is to add the stock on declines down to ₹335.
Sequent Scientific: The brokerage noted that the stock has concluded its two-year consolidation period with a breakout from a Cup and Handle Formation. This breakout was confirmed by a long-term trendline breakout in the RSI. Additionally, the stock has exceeded its 50-month moving average (MMA), which previously acted as a strong resistance level. Based on the pattern breakout, the target price is ₹248. The brokerage suggests adding the stock on declines down to ₹155.
As investors navigate this bullish market, Progressive Shares' technical stock picks for September offer potential opportunities to capitalise on the continued upward trajectory. Whether the markets sustain this momentum or experience brief corrections, the underlying strength suggests a resilient performance in the near term.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
