Here's why Mehul Kothari recommends to Buy Garden Reach, Praj Industries

According to the technical analyst from Anand Rathi, Garden Reach can rally to Rs 590, while Praj Industries can bounce back to Rs 412.

BUY

Garden Reach Shipbuilders & Engineers (GRSE)

Buy Near: Rs 540

TargetL: Rs 590

Stop Loss: Rs 515

Similar to other shipping related stocks; even GRSE has been upbeat and is trading near its life time high. We witnessed a fresh breakout in the stock above Rs 535 and the pattern resembles a bullish symmetrical triangle. The price action is supported with decent volumes.

Thus, we advise traders to buy the stock near Rs 540 with a strict stop of Rs 515.

BUY

Praj Industries

Buy Above: Rs 387.50

Target: Rs 412

Stop Loss: Rs 375

During the past one month; Praj Industries has been in a corrective mode and has eroded around 17 per cent from the peak of Rs 461. The stock is a bit oversold on the daily time frame and has been consolidating above 200-day moving average since last few trading sessions. There is a possibility of bounce from here on.

Hence, we advise traders to buy the stock above Rs 387.50, with a strict stop of Rs 375.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).