Indian stock markets ended sharply lower on Thursday, with benchmark indices reacting to muted global cues, F&O expiry pressure, and fears of a US recession. The BSE Sensex closed down 823.16 points at 81,691.98, while the Nifty50 shed 253.20 points to close at 24,888.20.

Despite the broader market decline, three buzzing stocks – HDFC Bank, Max Healthcare Institute, and RBL Bank – showed strong bullish setups, making them top picks for technical traders in the next few sessions.

Here’s what Vishnu Kant Upadhyay, AVP Research & Advisory at Master Capital Services, advised on how to approach each stock from a technical perspective.

HDFC Bank | Buy | Target Price: Rs 2,035–2,060 | Stop Loss: Rs 1,878

HDFC Bank Ltd, one of the largest private sector banks in India, has shown a breakout from a rectangle consolidation pattern, suggesting a bullish continuation of its ongoing uptrend. The breakout has been confirmed by a successful retest of the upper range boundary, which aligns with the 21-day Exponential Moving Average (EMA).

Technically, the stock is showing a pattern of higher highs and higher lows, and is trading above its 21-EMA and 55-EMA, indicating sustained strength. The Relative Strength Index (RSI) stands at 52, showing comfortable bullish territory. A bullish divergence on the MACD confirms the underlying strength in momentum.

Traders are advised to go long with a target zone between Rs 2,035 and Rs 2,060, while keeping a stop loss at Rs 1,878 to limit downside risk.

Max Healthcare Institute | Buy | Target Price: Rs 1,298–1,320 | Stop Loss: Rs 1,130

Max Healthcare Institute Ltd, a major player in India's private healthcare space, has delivered a bullish breakout from an ascending triangle pattern, which is traditionally seen as a bullish continuation formation.

What makes the move more convincing is a sharp spike in trading volume, reflecting renewed buying interest from institutional and retail participants alike. The stock is comfortably trading above key exponential moving averages, further confirming trend strength.

The RSI stands at 60, which is considered healthy in bullish territory. Also, the MACD has given a bullish crossover, adding another layer of technical confirmation.

Buyers can target Rs 1,298 to Rs 1,320 on the upside with a protective stop loss placed at Rs 1,130.

RBL Bank | Buy | Target Price: Rs 245–255 | Stop Loss: Rs 208

RBL Bank Ltd has broken out from a well-formed rounding bottom pattern, which is often associated with trend reversals. This technical reversal signals a shift from a long-term downtrend to a fresh uptrend, especially with strong volume support.

Post-breakout, the stock has retested the breakout level, validating it as a new support zone. A golden crossover – where the 55-EMA moves above the 200-EMA – has further strengthened the bullish sentiment. The stock is currently trading above its 21-EMA and 55-EMA, showing sustained price strength.

Momentum indicators remain strong, with RSI at 60 and the MACD showing a bullish bias. This provides a good risk-reward opportunity for short-term traders.

Traders may look to go long with targets of Rs 245 to Rs 255, while maintaining a stop loss at Rs 208 to manage volatility.

Conclusion

While the overall market trend remains cautious amid global economic concerns and macro volatility, stock-specific technical breakouts provide opportunities for active traders. HDFC Bank, Max Healthcare, and RBL Bank have clearly defined breakout patterns, strong momentum indicators, and institutional participation, making them high-potential trade setups.

Traders are advised to monitor price action around key moving averages and volume confirmation for optimal entry and exit. Keeping tight stop losses and well-defined target zones is crucial in a volatile trading environment.

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