2 stock picks by Osho Krishan of Anand Rathi: Buy LIC Housing, Adani Ports

LIC Housing Finance seems to be trading near its multi-year strong demand zone, and charts also indicate formation of likely bottom around Rs 350-360 zone

BUY ADANI PORTS | TARGET: Rs 900 | STOP LOSS: Rs 645

ADANIPORTS has been hovering near the 50% of the Fibonacci retracement of the recent fall and even has seen a smart recovery to surpass all the major exponential moving averages on the daily chart. Also, the stock has witnessed a bullish crossover of short-term exponential moving average to the medium-term suggesting the sluggishness to fade away in the counter. The stock is expected to outperform the broader index in the near future. Hence looking at the technical set up it is advisable to accumulate the stock from a medium-term perspective.

BUY LIC HOUSING FINANCE LTD | TARGET: Rs 460 | STOP LOSS: Rs 360

LICHSGFIN has recently corrected from the top of 540 and reached near to 360 mark without any meaningful pullback. However, the weekly chart construes that 350 – 360 has been a strong demand zone for the stock for many years. Even, the stock underwent a sharp recovery from this demand zone in the past instances. The demand zone coincides with the 50% Fibonacci retracement of the entire rally from the lows of 2020. And also, on the monthly scale, the formation of a bullish ‘Hammer’ candlestick pattern has been seen indicating that the bottom might have been made.

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Osho Krishan is senior manager – Equity Research at Anand Rathi Shares & Stock Brokers. Views are personal.