Jigar S Patel of Anand Rathi recommends buying these three stocks today
Source: Business Standard
IRCTC:
During the current trading session, the stock attempted to break out of its consolidation range but was unable to sustain itself above the breakout level, signalling some resistance. From a technical indicator perspective, the Daily Relative Strength Index (RSI) has bounced back from the 40 level, which coincides with a break in the bearish trendline.
This reversal in the RSI suggests that bullish momentum may be building in the coming sessions. However, to confirm this upward move, it is recommended to enter the stock only after a decisive close above ₹953, targeting ₹1,050, with a stop-loss set at ₹895 on a daily closing basis to manage risk.
SDBL
The triple bottom pattern, occurring at a previous demand zone, is often considered a bullish signal, suggesting that the stock has found strong support at these levels and may be poised for a reversal. On 30-08-2024 trading session, the stock saw a surge in trading volume, indicating renewed investor interest.
The price action in this session was strong enough to give bull cross on daily MACD scale signaling a potential shift from a downtrend to an uptrend.
These technical developments make the stock an attractive buy candidate at current levels. Based on this analysis, we recommend going long in the price range of Rs 118-120, targeting an upside of Rs 132. To manage risk, a stop-loss should be placed at Rs 112 on a daily closing basis, ensuring protection against any further downside.
PATELENG:
After reaching a peak around the Rs 70 mark in July 2024, the stock experienced a notable correction, losing 19 points, which translates to a significant 27 per cent decline from its recent high. This sharp pullback brought the stock down to a critical support level, located within the demand zone of Rs 50-53, a level that previously acted as a strong support during its prior uptrend.
At this crucial support level, a bullish bat pattern has emerged—a harmonic pattern known for signaling potential bullish reversals. The bullish bat pattern is typically formed when the price action retraces to specific Fibonacci levels, indicating that the stock is poised for a reversal from its recent decline.
The emergence of this pattern, combined with the stock finding support at a key demand zone, creates a strong confluence of technical indicators that point towards a potential upward move.
(Disclaimer: Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own.)
First Published: Sep 16 2024 | 6:58 AM IST
