Here's why Osho Krishan expects Aarti Industries, Dabur to gain

According to the technical analyst from Anand Rathi, Dabur has seen some strong resurgence from its 200-DEMA in the recent period

BUY
AARTI INDUSTRIES LTD
TARGET: Rs 1,020
STOP LOSS: Rs 920

AARTIIND has corrected over 16 per cent in a short period and has plunged near its previous breakout zone. On technical parameters, the 14-period RSI tends to be in the region of oversold from where it has shown the first sign of reversal with a positive crossover to the signal line suggesting formation of a strong base. Even in the last trading session the stock has seen some positive traction signalling a trend reversal in the counter. Even from a risk-reward ratio the stock is placed at a very lucrative zone and has strong upside potential in the coming future.

BUY
DABUR INDIA LTD
TARGET: Rs 635
STOP LOSS: Rs 580

DABUR has seen some strong resurgence from its 200-DEMA in the recent period and is currently hovering above all the major exponential moving averages on the daily time frame. The stock also has been consolidating near the mean of Bollinger band from the past couple of trading sessions indicating the formation of a strong base before another set of a healthy rally. Also looking at the overall technical parameters, the stock seems to have the potential to surge higher in the near term.

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