Domestic brokerage firms are positive on select stocks including State Bank of India (SBI), Manappuram Finance, Bharat Electronics (BEL), Tata Consumer Products, Bajaj Finserv and Lemon Tree Hotels. These stocks appear to be strong contenders for a sharp rise on a technical basis. Here’s what brokerage firms suggest about these stocks:
State Bank of India | Buy | Target Price: Rs 585 | Stop Loss: Rs 490
State Bank of India has closed in an inside range of the previous month’s candle with positive divergence and a doji candle indicating a breakout on the higher side. Its RSI turned upwards on its shorter time frame chart and it has moved higher from the lower range with positive price action. We believe the stock will hold its 21-month average after a corrective fall of four months from the high of Rs 630. A long position can be initiated in the range of Rs 527-520 with a target of Rs 585 and a stop loss of Rs 490.
Recommended by: Reliance Securities
Bharal Electronics | Buy | Target Price: Rs 108-112 | Stop Loss: Rs 90
Bharal Electronics (BEL) on the weekly chart has decisively broken out above the medium-term ‘falling channel’ at Rs 96 with a strong bullish candle indicating a positive bias. The breakout is accompanied with an increase in volume confirming participation at the breakout level. The stock holds above 50 per cent fibonacci retracement of a rally from Rs 62-114 placed at Rs 88 forming a medium-term support zone. The weekly strength indicator RSI is in bullish mode and the weekly RSI crossover above its reference line generated a buy signal. The above analysis indicates an upside of Rs 108-112 levels.
Recommended by: Axis Securities
Bajaj Finserv | Buy | Target Price: Rs 1,450 | Stop Loss: Rs 1,000
After falling from the recent high, the stock has been in a prolonged downtrend and is now seen coming down onto the critical trend line (placed around Rs 1,150 levels) connecting the previous top and bottom. 200 SMA placed around Rs 1,130 levels is likely to act as long-term support. Leading indicators Stochastic looks extremely oversold while the RSI is seen hovering around previous bottoms suggesting the stock is likely to find buyers around 1150 levels. Based on the aforementioned explanations, we recommend buying Bajaj Finserv on dips in the price range of Rs 1,200-1,100 for the target of Rs 1,450.
Recommended by: SMIFS Research
Tata Conusmer Products | Buy | Target Price: Rs 765 | Stop Loss: Rs 685
Tata Consumer Products bounced after forming a base around its horizontal support line and rose to a 3-week high. Its daily RSI and MACD witnessed bullish divergence and were positively poised. This could lead the stock towards its 100-day SMA initially and 200-day SMA subsequently. In case of any decline, the stock will respect its horizontal support line. A long position can be initiated in the range of Rs 718-710 with a target of Rs 765 and a stop loss of Rs 685.
Recommended by: Reliance Securities
Manappuram Finance | Target Price: Rs 138-142 | Stop Loss: Rs 108
After taking support, near the Rs 100 level in month of February 2023, Manappuram stock made a strong comeback, as prices were seen recovering towards Rs 115 level, in a short span of time. The recovery has been observed with a move above its 200-day exponential moving average on daily charts. At the current juncture, the stock can be seen trading in a rising channel with the formation of a higher bottom pattern. Additionally, a fresh breakout has been observed on the charts above the inverted head & shoulder pattern. Therefore, one can buy stock in the range of Rs 120-124 levels for the upside target of Rs 138-142 levels with a stop loss below Rs 108 levels.
Recommended by: SMC Global
Lemon Tree Hotels | Target Price: Rs 90| Stop Loss: Rs 71 | Upside Potential: 15%
Within the hotel sector, we remain constructive on Lemon Tree Hotels as it has formed a major base around the key support area of Rs 70-73 and is currently on the cusp of generating a breakout above the last three month’s triangular consolidation, thus offering a fresh entry opportunity with favourable risk-reward set up. Buying demand is seen emerging from the key support area of Rs 70-73 as it is a confluence of the 52-week’s EMA and the 80 per cent retracement of the previous up move of September-December 2022 and has already taken 17 weeks to retrace just 80 per cent of its preceding 14 week’s rally. A shallow retracement signals a robust price structure and a higher base formation. We expect the stock to resume up move and head towards Rs 90 levels being the 61.8 per cent retracement of the entire previous decline.
Recommended by: ICICIDirect Research
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